Pakistan’s stock market is likely to improve in the upcoming months. A renowned Canadian advisory firm BCA Research has claimed that it is expected to move higher over the next six months. BCA Research has been a leading independent provider of global investment research that largely contributes to the analysis and speculations about the stock market. Their report has stated that the Pakistani stock prices have already seen a negative for a long time and now its equities are likely to move higher over the next 6 months.
Currently, Pakistani stock prices in US dollars’ terms are 20% lower than their January high and 56% lower than their 2017 high.
The Pakistani government has also speculated a contraction in real GDP during the fiscal year 20129-2020 in the first 68 years. This will buttress the balance of payments position and the investors will become more confident in investing, given the continuing policy rate cuts.
BCA Research has highly recommended buying Pakistani equities which will be helpful in business cycle recovery from the worst recession, even worse than the 2008 Great Recession. The research further mentions that fertilizers and cement producers will benefit from reducing energy prices. At the same time, the construction sector is also functional that will uplift the demand of the cement that is also looking positive in exporting the production.
Pakistan’s macro-dynamics are also expected to improve as per BCA’s speculation and its net portfolios investment is expected to increase as well. This is a positive step for Pakistan as it will attract many foreign investors.