KARACHI: Stock Exchange, widely regarded as a barometer of the country’s economy, in 2018 dented investors’ confidence following modifications in political and global economic condition.
Importantly, one federal budget did not prove to be enough for the country as it followed a mini budget after change of guards in the federal capital.
Foreign investors approximately offloaded $500 million share this year.
The year started with PSX 100 index at 40,471 points, and lost more than 2,000 points.
Share prices of different companies declined more than Rs700 billion.
“We are facing current account and fiscal deficit therefore foreign reserves are depleting, the government has compromised on the GDP growth and our forecast for FY20 is 3 or 3.5 percent. Whenever, there is slow growth in the economy, the market never outperformed, we can see index level between 42,000 to 45,000,” said Saad Hashmi, research director for Topline Securities.
Economists suggest that the government needs to devise and implement an effective and comprehensive strategy for reviving the state’s economy.