KSE 100 after having a very poor month of February recovers very quickly. Just a month back, market was trading at 12,700 level and in no time it reached 11,100 level which is a decline of around 12.6%. However, in just two session of this week market has jumped from 11,100 to 11,600, an appreciation of 4.5% in just two days shows how volatile our market is.
As I have stated many times, I am a fundamental investor and for me the most important thing is "Corporate Profitability" so anything that impact it either directly or indirectly causes a concern for me. However on-going political issues did hurt the market but I continued to buy blue chip stocks and my strategy paid off as market finally rebounds. I am in no way saying that political issues should be neglected completely but we need to know the true "intensity" of these issues and how and whether they are linked with the market or not.
Rising oil prices is something concerning me a lot, a county like Pakistan can not afford this level of oil prices (hovering around 110-120), one needs to keep a close eye on oil prices as some analysts are predicting that it may even touch 200$/barrel which could be devastating for a country like Pakistan already going through an economic slowdown with high inflation (which we call as stagflation).
There is one good news in the market, actually this is the news that helped the market to rebound, official date of leverage product has been announced and it is 7th March, 2011.
Good Luck with your investments!