FINANCIAL MARKETS

& INSTITUTIONS

Presenter: Shahzaib
Shams Shaikh
Presented To:
Mr. Bisharat Hussain
 Pakistan stock exchange
performance 2018-2019

Pakistan Stock Exchanges

OUTLINES
KSE-100 Index

Factors affecting
performance
 PAKISTAN STOCK EXCHANGE
PERFORMANCE 2018-2019

• 2018 was another nightmare year for Pakistan Stock Exchange (PSX) as it lost $26
billion in market capitalization over the 12 months.
• According to Topline Securities, the equity market continued its fall for the second
year in a row, down 8 percent in 2018.
• Due to 2018 being the year of General Elections (held in July 2018), the cloud of
political uncertainty gripped the market since the beginning of the year while twin
deficits (fiscal deficit settled at 6.6 percent and current account deficit settled at 6.1
percent of GDP in FY18) weakened any prospect of a stable economy.
• In the Semi-Annual index review of 2018, Pakistan lost two (Lucky Cement & United
Bank) of its 5 stocks.
 DIFFERENT RESEARCH AND SOURCES

• Research conducted by the “Jang Group and Geo Television Network” reveals
that the ruling regime’s tenure in the cozy power corridors of Islamabad.
• According to Dawn newspaper (May, 8 2019): From Aug 17 to Nov 22, the KSE-
100 Index has drifted down by 1,573 points or 3.8 per cent.
• According to Dunia, Pakistan had exchange rate of PKR 122.5 against one dollar
on August 18th, 2018. While on November 25th, 2018 it was PKR 135.2.
• Petrol prices are not an economic indicator but it effects general population at a
very large scale .The price of Gasoline was 95.24 per liter on August 18th, 2018.
While on November 25th, 2018 it was PKR 97.83.
DIFFERENT RESEARCH AND SOURCES
 PAKISTAN STOCK EXCHANGES KSE-100
INDEX

• Pakistan Stock exchange provides one of most liquid investment forum for
foreign investors. The KSE-100 index was at 42,446 on August 18th, 2018.
While closing for week of November 25th, 2018 was at 40,869.
 TOTAL VALUE OF SHARES

• The PSX was valued PKR 8,703 billion on August 18th, 2018.While closing for week of
November 25th, 2018 its capitalization was at PKR 8,096 billion. So market
capitalization went down in last 100 days
 INFLATION

• The inflation was reported to be 5.84% on August 18th, 2018. While on

November 25th, 2018 it was 6.8%. It shows that purchasing power of
Pakistani nation went down and prices of products went up.
 TRADE DEFICIT

• The trade deficit was USD 2.9 Billion on August 18th, 2018. While on November 25th,
2018 it was USD 2.93 Billion. The rise is very marginal in 100 Days but this is after
introducing regulatory duties on imports and devaluation of currency. If the currency
would have been at same level it could reduce to a significant extent.
 PAKISTAN’S FOREIGN RESERVES

• Pakistan’s foreign reserves stood at USD 16.72 Billion on August 18th, 2018. While on
November 25th, 2018 they were standing at USD 14.7 Billion. Analysts expect foreign
exchange to dip further by the end of the week as month ends
 INTEREST RATE

• The interest rate was 7.5% on August 18th, 2018. While on November 25th, 2018 it was
at 8.5%.
 FUTURE OUTLOOK

• It may take six months or more to cover the loss of PSX in terms
of points and capitalization depending on the confidence of the
investors, which is yet to be restored on the economic system and
the new government’s policy.
 CONCLUSION

• The performance of Pakistan stock exchange has not been good

so far in PTI government. The market has lost several thousand
points.
• The loss in market can be for few months as per the government,
the investors are confident enough to regain the points.
• In spite of poor performance of stock market the government is
hopeful to capture several thousand points in near future.
THANK YOU

QUESTIONS?