Futures Trading From Pakistan: A Guide to The PMEX 

Are you a Pakistani investor with dreams of investing in US Indices such as Nasdaq, S&P500, gold, currency pairs, and more? Well, the good news is that it’s possible, and the way to do it is through the Pakistan Mercantile Exchange (PMEX). In this blog, we’ll take you on a journey through the exciting world of international investment, explaining how you can trade on PMEX and why it’s worth considering.

The Pakistan Mercantile Exchange Limited (PMEX) is Pakistan’s first and only multi-commodity futures exchange. It is regulated by the Securities and Exchange Commission of Pakistan (SECP). PMEX offers a diverse range of futures contracts based on various commodities and financial instruments, including both cash-settled and deliverable futures contracts. Visit our global markets playlist to learn more.

The Best Performing Sectors in Pakistan for Investing

Greetings savvy investors, and welcome to the only guide you’ll need on which sectors you should consider for investment in Pakistan. Our research team has carefully analyzed Pakistan’s economy to identify the top 4 sectors that will offer the most fruitful investment opportunities in the local stock market. So let’s dive right in!

The wheels of the oil and gas sector are set in motion, gaining momentum from the anticipated settlement of the gas circular debt. An impressive PkR 414 billion is poised to be reclaimed from the colossal PkR 1.27 trillion debt, revitalizing the sector’s fiscal vigor. Moreover, as gas tariffs are expected to rise, they pave the way for debt reduction, but also for greater liquidity in gas companies. If you want to stay updated regarding the updates of the oil and gas and other sectors in Pakistan, follow KTrade Securities on Linkedin.

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Types of Trading Accounts 

Today, we’re delving into the world of brokerage accounts in Pakistan and how they can be your trusted companions on your investment journey. With the advent of online trading platforms, the landscape of investing has evolved, offering both beginners and seasoned investors new opportunities and conveniences.

Firstly, we’d like to take a moment to acknowledge learning trading accounts, which require you to simply sign up and trade virtually with real-time market data and performance, so you can practice trading without using your real money. Download the KTrade App to try it out!

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Common Mistakes to Avoid When Investing 

If you’re new to investing, here are some common mistakes that you should avoid when entering the world of money management. But even if you’re a seasoned investor these tips can help you make smarter decisions and build a successful financial future with KTrade Securities.

One of the biggest mistakes new investors make is diving into investments without proper research. Before you invest your hard-earned money, take the time to understand the companies or assets you’re interested in. Avoid making decisions based on tips or rumors; instead, do your due diligence. Research the financial health, performance history, and future prospects of the investments you’re considering. This knowledge will empower you to make informed choices and reduce the risk of potential losses. KTrade also provides you with weekly stock picks so that when you do choose stocks to trade, you can be sure you are making the right decision.

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Evaluating Stocks on the KTrade App

You’ve done everything – downloaded the app, deposited the money, and given all the documents. All that is left is to trade. But how would you know which stocks to buy and when to sell them?

One of the fundamental rules of investing is to buy a stock when it’s undervalued and sell it when it becomes overvalued. But how would you know how to do that? Using both fundamental and technical analysis techniques, we’ll show you how to understand these methods to help you make smarter investment choices using the KTrade Securities app.

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How Much Should You Invest? Tips to Manage Your Money

Investing can be a daunting task, but the first place to start is by gaining control over your finances. By tracking and managing your money effectively, you lay a strong foundation for future financial success. So, instead of giving you a fixed amount you ‘should’ invest, we’ll explain how to optimize your savings to begin your investment journey and set a fund that’s right for you. If you want detailed guidance on where to invest and how, contact KTrade Securities, where experts are waiting to help you! 

A popular budgeting rule, the 50-30-20 Rule, provides a framework for allocating your monthly income. This rule can be applied to virtually any income bracket, which is why it’s a great place for anyone to start. Allocate 50% of your income to cover essential expenses like rent, school fees, and food. Devote 30% towards non-essential but desired expenses such as travel and dining out. The remaining 20% should be saved for future goals and investments! Simple enough, right?

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5 Investment Avenues for Beginners

Investing can be overwhelming and confusing. At KTrade Securities, we understand the challenges faced by new investors, and that’s why in this blog, we will explore five different investment avenues: stocks, savings certificates, mutual funds, real estate, and gold. By understanding the risks and benefits associated with each avenue, you can make informed investment decisions aligned with your financial goals and risk tolerance. We also have a series on YouTube called Investing For Beginners, which you can watch here.

Stocks represent ownership in a company and can be traded on the Pakistan Stock Exchange (PSX). When you invest in stocks, you become a shareholder and participate in the company’s performance. So, if the company performs well in the stock market, you could profit, but if it does not, you could suffer a loss. While stocks offer the potential for high returns, they also come with high risks. It is crucial to select the right companies to invest in and stay updated with their financial performance. KTrade Securities has an app where you can trade stocks, offering liquidity and opportunities for investors with surplus cash and savings. We also regularly recommend stocks to invest in every week, which you can check out here

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Breaking Down Pakistan’s Federal Budget 2023-24

A federal budget is a crucial plan for a government’s expenditure over a specified period – in this case, the fiscal year. It outlines spending priorities and how revenue will be generated to support those priorities. While we’ve published a detailed report analyzing the budget, we know the numbers can be overwhelming. So let’s go through it together.

While the federal budget can be complex, it is crucial for citizens to comprehend its implications for their lives. If you want to watch our video on the impact of the federal budget, click here.

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Why Is KTrade Bullish on Pakistan?

We Think Not!

Word on the street is that Pakistan is heading towards default. However, KTrade is bullish on Pakistan and its stock market: we expect stock prices to rise over time, meaning those who invest now could make a substantial profit. (Want to find the best stocks to invest in? Click here) We will be discussing the factors that indicate the country’s ability to avoid a default and maintain a sustainable economic growth trajectory, as well as what investors can do to take advantage of the current situation. To read the full report, click here

What Is A Sovereign Default?

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You might be thinking, what does ‘defaulting’ even mean? A ‘sovereign default’ occurs when a nation is incapable of meeting its financial obligations and repaying the debts it owes to lenders. It essentially represents a declaration of bankruptcy on a scale that encompasses an entire country. The repercussions of a country defaulting are profound, impacting its economy significantly and causing substantial damage to its credibility.

Why We Think Pakistan Won’t Default:

We think these factors will save Pakistan from declaring a default:

  • Manageable Debt
  • Geostrategic Importance

Manageable Debt Obligations

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Pakistan’s external debt stands at around USD 85 billion, which is only around 25% of its GDP. Notably, commercial loans are only 7% of its total debt. We estimate a funding need of around USD 3.0-5.0bn over the next 12 months. We think this gap can easily be managed through controlled external accounts and support from friendly countries.

Geostrategic Importance

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Pakistan holds a crucial position as a “Pivotal State” within the global context, especially in relation to China and the US, two prominent global economies. China’s Belt & Road Initiative has made substantial investments in Pakistan, primarily through the China-Pakistan Economic Corridor (CPEC), with the aim of leveraging the country’s trade routes. Additionally, Saudi Arabia has unveiled plans for significant investments in Pakistan, including a refinery valued at $10-12 billion. (Want to know more about the ongoings in the international community? Follow our Facebook page.) Considering the substantial commitments made by these nations to Pakistan, we believe that the probability of Pakistan receiving support funds from them is high.

How to Best Play the Situation?

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Pakistan’s equities and international sovereign bonds hold promising investment potential. The benchmark KSE100 index is trading at multiples of 3x, significantly below historical averages. Moreover, Pakistan sovereign bonds are being traded at 30% of their par value. These assets can likely revert to their historical averages once concerns over potential default subside, allowing investors to benefit from a 3x return on their investments. If you want the best investment advice, download KTrade, and become the expert trader you were meant to be!

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The Rise of Islamic Banking: What It Means for Investors

Islamic banking, also known as Sharia-compliant banking, has been gaining momentum in Pakistan. With the assets of the Islamic Banking Industry (IBI) reaching Rs 6,902 billion in September 2022, it’s essential to understand what Islamic banking is and its implications for investors. 

Islamic banking operates in accordance with Islamic principles and prohibits the charging or paying of interest (riba). Instead, it promotes profit-sharing arrangements, risk-sharing partnerships, and ethical investment practices. This system aims to align financial activities with Islamic values and promote social justice and economic stability.