Wednesday, January 23, 2008

Recovery but still no interest

After the U.S cut down its interest rate by 0.75% to 3.75% the lowest in 25 years gave some recovery on the European markets. Today in the Asian markets the bulls were ruling and all the markets gained interest.
With that the commodities also picked up its momentum and WTI cushing Oil is currently trading at $89/bbl along with that is Gold which has now breached $890/oz.
The move from the feds was a surprise was this was not in the cards. This can cause some serious economic repercussions. Looking at 2007 the interest rate scenario in U.S was on a hike as they wanted to slow down the economic processes and hence growth rate. Inflation was also getting to alarming levels and the feds took notice and started interest rates. The dollar was gaining pressure and in an attempt to ease out the currency outlook the Feds said that 5% level is efficient.
Then began the turmoil of the sub prime mortgages that shocked the U.S and caused the major meltdown in their financial markets which then also started off in the whole globe.
Now with further cutting the interest rates it will be a matter of time that we will see what will happen to the U.S economy. Experts say that inflation can breach to tremendous levels but for now U.S might just buy some time with the cutting of the interest rates.

In the capital markets in Pakistan, the KSE100 closed at 13787.07 with an increase of 27.57 (0.20%). The KSE30 closed at 16407.43 with an marginal increase of only 2.60 (0.02%).

The Major sectors that gave support to the market's performance were:
Investments banks/cos/securities
Food and personal care products
Oil and gas exploration companies
Automobile parts and accessories

Marginal support were seen from the following sectors:
Technology and communication
Oil and gas marketing companies
textile composite

The following sectors witnessed selling:
Power generation and distribution
Commercial Banks
Automobile Assembler

Another positive news that was flashing in Pakistan was that the cabinet,met with Prime Minister Muhammedmian Soomro in the chair on Tuesday, has approved the proposal 'Stock Exchanges (Corporatisation, Demutualisation and integration) Ordinance'. The ordinance' will ensure that all stock exchanges would be corporatised and effectively be demutualised within 110 days of the promulgation of the law. The shareholders structure is 40% existing members, 20% general public and 40% foreign strategic partner or local financial firms.


Anonymous said...

Dude this is awesome! Keep it up.


Anonymous said...

I saw this add in news paper on this weekend about stock trading concept and strategies course being offered by someone is karachi (tel:5867966). seems to be good idea ... anyone attending? has anyone attended this event in the past?