Reasons behind Stock Exchange Growth

[wellington]

What are the reasons behind all time high performance of Pakistan Stock Exchange in the last few months?

[Jsajid]

Originally Posted by wellington

What are the reasons behind all time high performance of Pakistan Stock Exchange in the last few months?

a) Poor choice of investment opportunities.
b) Ultra low interest rate.
c) Large profits as share of GDP.
d) Anticipation despite lower economic performance.
e) Share prices of selective firms.

[Jsajid]

Originally Posted by wellington

What are the reasons behind all time high performance of Pakistan Stock Exchange in the last few months?

a) Poor choice of investment opportunities.
b) Ultra low interest rate.
c) Large profits as share of GDP.
d) Anticipations and speculations despite lower economic performance.
e) Share prices of selective firms.

These are some of factors which boost Stock Market even low economic growth. Except b) other points are major determinants of KSE growth.
Foreign Direct investment reduced in last year. Capital outflow, Political instability, and Investors confidence are the factors you may consider in booms.

[wellington]

Thankyou for your answer.Can you kindly elaborate point 'c' i.e large profits as share of gdp as I did not understand it?

[Jsajid]

Originally Posted by wellington

Thankyou for your answer.Can you kindly elaborate point 'c' i.e large profits as share of gdp as I did not understand it?

When only a few companies grow and earn high profits but others may facing loses, such situation may indicate stock exchange growth. The large share of the total profit of the companies is represented by such a few large firms.
I hope it is clear now?

[Jsajid]

Are you preparing for CSS 2017?

[wellington]

Yes it is clear now.Thank you!I am preparing for css and a friend asked me about this particular issue so it was in my mind.