Pakistan’s Karachi Stock Exchange plunges while India’s rises after Article 370
Anyone who has chosen to invertir en la bolsa de valores (invest in the stock market) know how volatile it can be after big political or societal changes. The stock market always moves when there’s a new president, it plunged after Brexit, and now the Karachi Stock Exchange, the main stock exchange in Pakistan, is falling. The benchmark KSE 100-share Index fell by 723.22 points, and is now at 30,277.45 points. Some analysts are predicting that it will fall further to 25,000-28,000 points! This is because Mutual Funds and investors are dumping the stocks.
“The main issue is that mutual funds have continuously been receiving redemption calls from their investors,” said Arif Habib Limited Head of Equity Sales Saad bin Ahmed in remarks to The Express Tribune.The redemption calls prompted mutual funds to sell stocks. The other option investors gave to fund managers was that their investment should be shifted from the risky stock market to risk-free avenues like fixed-income funds. (Source: The Express Tribune)
On the other hand, the Indian stocks have risen. The NIFTY-50 rose after the passing of the resolution to revoke Article 370.
That should send some message to the establishment there on what a great success their measures have been!