Pakistan's Stock Index Falls on Imposition of Emergency Rule
Pakistan's Stocks Markets fell for a third straight day in concern with President Pervez Musharraf's decision to impose emergency rule, which will delay national elections and derail record economic growth. Pakistan's benchmark Karachi Stock Exchange 100 index fell 233.78 points or 1.7 percent to 12,681.26 at 9:47 a.m. local time. The index, which has risen 39 percent this year, has fallen 2.8 percent since Oct. 31, when former Prime Minister Benazir Bhutto said she cancelled travel plans after hearing rumors that Musharraf intended to impose emergency rule.
Corporate earnings of the quarter depicted a mixed trend with banks and E&P showed decent growths, whereas insurance & cement sectors showed declines. During the week, auto assemblers, cement and E&P underperformed on the market as they fell by 9.3 per cent, 5.7 per cent and 5.3 per cent, respectively. The banking sector performed in line with the market with a decline of four per cent in market capitalization, whereas the fertilizer sector performed better.
Considering Astrological parameters, Saturn and Ketu are transiting over its fifth house. After November 15, 2008 lord of fifth house will be transiting over Natal Ketu. Natal Sun is also in conjunction with Natal Saturn, Mercury and Venus. Ganesha feels that, current time is difficult for its Financial Markets as well as Banking Sectors also. But, transiting Jupiter will have benefic aspect on fifth house over and above transiting Saturn and Ketu. Pakistan will be completing Ketu Mahadasha after December 26, 2007. Influence of Venus Mahadasha may provide better banking facilities and Financial Markets may take Bull during this time. On the other hand, Ketu will be entering Cancer sign after April 2008; this phase will also be not easier because of the presence of Sun and Saturn in Cancer sign.
Technical correction for Pakistan Stock Exchanges was expected on the Karachi bourse as the just ended financial result announcement season for the quarter ended on Sept 30. Therefore, uncertainty on political front, and law and order situation in the country paved the way for bears to gain the upper hand.
Here we should not forget that Pakistan Stock Markets are essential bastion of the American position in the Middle East. Without Pakistan as a supporter, it is hard to see how the US could maintain its position in Afghanistan. General Musharraf is pro-Western. One of the worst possible alternatives would be an anti Western Islamic regime. The alliance with Pakistan has enabled the US to protect the southern flank of the oil-rich countries of the Gulf. The West depends upon a stable regime in Pakistan.
Dharmesh Joshi & Malav A. Bhatt
The Ganeshaspeaks Team