Anum Qudsia Siddiqui - KASB | KTrade

The Role of Technology in Investing

In the fast-paced world of finance, technology has revolutionized the way we approach investing. Thanks to the rise of innovative apps and tools, investors in Pakistan now have unprecedented access to information and resources that can empower them to make informed decisions. So let’s explore the significant role that technology plays in shaping the landscape of investing in Pakistan:

One of the most notable advantages that technology brings to the table is the ability to access real-time market updates. Mobile apps like KTrade allow investors to monitor stock prices, indices, and news feeds instantly. Whether you’re a seasoned investor or a beginner, having up-to-the-minute information helps you stay ahead of market trends and make timely decisions.

Top Economic Events of This Week | November 13 – November 17 – 2023

This week is important for the economy, with several key reports being released. Jerome Powell, the Federal Reserve Chair, recently highlighted the importance of these reports. He mentioned that current interest rates might not be high enough to reduce inflation to below 2% yearly. Also, Powell emphasized the Fed’s readiness to further tighten policies if needed.

Investors had wrongly thought the cycle of increasing interest rates was over. However, Powell’s statements at the IMF indicated a continued cautious approach, with decisions based on upcoming data.

Top Economic Events of This Week | November 6 – November 10 – 2023

This week’s economic calendar is relatively light on data releases, which means investors will be closely watching companies’ quarterly reports. Additionally, speeches from members of the Federal Open Market Committee (FOMC) will be of significant interest. One particular speech that investors are eagerly anticipating is from Federal Reserve Chair Jerome Powell on Thursday. Powell’s remarks will provide insights into the state of the economy and the direction of monetary policy.

Here are five key economic events to keep an eye on this week.

Fed Holds Rates Steady; Stocks Surge, Dollar Dips

The Federal Reserve again keeps rates at 5.25%, resulting in the stock market rising for a third day. However, the Fed Chairman dismisses the idea that future interest rate hikes are impossible. Nonetheless, US bond yields retrace downwards, and the US Dollar declines, supporting the US stock market. Most economists believed the Federal Reserve would keep rates unchanged on this occasion, but December’s meeting is less specific. According to the CM FedWatch Tool, the possibility of a rate hike in 41 days is 20%. However, if employment data and the inflation rate reach higher than expected, the chances of a hike will rise. If the possibility increases, the stock market will witness selling pressure and the Dollar may again rise.

The US Dollar Index rose in value on Tuesday and Wednesday but came under significant pressure after the Federal Reserve’s decision. This morning, the Dollar index declined by a further 0.50% and is the worst-performing currency of the day. The best-performing currency is the Euro. However, investors should remember that the Bank of England will announce their interest rate decision this afternoon. If the Bank of England’s monetary committee votes differently, the Pound’s price will likely be volatile.

Monthly Digest – October 2023 In Review

In October, Pakistan’s stock market showed impressive gains, with the KSE-100 index closing at 51,920 points. This was the highest level in six years. Several factors contributed to this positive trend:

The central bank maintained the policy rate at 22%, but the drop in government securities’ yields, along with expectations of declining inflation, led to hopes of a potential reduction in interest rates in the near future. They predicted a decreasing trend in inflation throughout the second half of the fiscal year but noted that oil price fluctuations and a gas tariff increase could impact inflation in FY24. To stay updated on more news like this, follow us on Facebook.

Earnings Watch: Apple, Qualcomm, AMD, Amgen’s Big Reveal

The US Dollar Index is again rising as the US PCE Price Index increases to its highest since June 2023. However, economists still believe the Federal Reserve is unlikely to increase interest rates while bond yields aim for 5.000%. According to the CM Exchange, only 25% of participants believe the Fed will hike in December. There are no economists who believe there will be a hike in November. According to most economists, if the Unemployment Rate declines below 3.8% and the JOLTS Job Vacancies remain above 9 million, the chances of a rate hike will increase. However, the deciding factor will be if inflation increases above 3.7%. According to Bloomberg, even an increase to only 3.8% will be enough to push the Fed to a more hawkish tone.

If the possibility of another 25 basis point rate hike rises, the US Dollar Index is again likely to rise above 107.00. In addition to this, the stock market will decline due to pressure from high bond yields and another rate hike. The US stock market on Friday mainly witnessed a decline, with only the NASDAQ increasing in value. However, the week’s futures market opened on a bullish price gap and increased. In addition, European indices such as the DAX and Euro Stoxx 50 are witnessing significant gains. This is also a possible indication that the US stock market may experience a higher investor sentiment.

Meta’s Legal Issues Drive Stock Down 7.35% Post-Earnings

The stock market this week has improved and attempted an upward correction but has struggled to do so. On Monday and Tuesday, the US stock market rose slightly, but was forming nothing more than a corridor. However, all three of the leading US indices depreciated on Wednesday due to bond yields again significant rises. The worst-performing were the NASDAQ and SNP500, which fell more than 3.80%. The Dow Jones was the best performing, which saw a strong impulse wave due to its exposure to defensive stocks. However, the Dow Jones also ended the day slightly lower.

Both negative and positive factors are influencing the stock market. Most earnings data up to now has been positive, but at the same time, companies have given a negative outlook for the coming year. However, the main negative factor for the stock market continues to be the high bond yields and low investor sentiment due to political tensions.

Suzuki’s Delisting – How Should Investors Respond?

Suzuki Motor Corp recently announced its plan to delist Pak Suzuki Motor Company from the Pakistan Stock Exchange (PSX). You can watch our summary of the events here. While the specifics of Suzuki’s strategy may be unique to its situation, it raises broader questions about how investors should respond when a company decides to delist.

Understanding the Situation

Investors Eye Major Tech Earning Reports and PMIs Tomorrow

Fund managers will turn their attention to tomorrow’s major earnings announcements and significant economic reports due tomorrow. Stock market investors will look at the upcoming earnings reports and the global Purchasing Managers’ Indexes. The Purchasing Managers’ Index will be released tomorrow morning for the Eurozone and the UK, while the US will make public their data once the US trading session opens. Investors will scrutinize the data to determine if a recession is likely and if another interest rate hike is possible.

The second factor, significant for the NASDAQ and SNP500, is the quarterly earnings reports. The following companies will publicize their quarterly figures tomorrow:

How to Invest in Different Market Environments

This week, Pakistan’s stock market continued its bull run and reached a record-high level of 50,000 points, last achieved 6 years ago on 8th June, 2017. But why did this happen?

The financial markets are complex and ever-changing, influenced by a myriad of factors. Understanding these market cycles and knowing how to invest in various market environments can significantly impact your investment success. Below, we’ll explore the different phases of market cycles and provide insights on how to navigate each phase effectively.