Stock exchange unfazed by Trump win

ISLAMABAD: Bears might have tumbled the international stock markets after unexpected Trump’s victory in the US Presidential Election 2016 but bulls ruled the roost at Pakistan’s stock exchange as it once again demonstrated more resilience and stability compared to the world’s markets including India.

In the wake of US Presidential Election 2016, Pakistan’s stock market once again demonstrated more resilience compared to India’s stock market on Wednesday after the announcement of the elections results. With the news of Donald Trump becoming the next elected President of US, the KSE-100 index closed at 42203.63 points with a positive change of 89.72 points or 0.2%. However, compared to the positive trend in KSE-100 index, India’s BSE Sensex index shed 1.23% demonstrating the negative sentiment created in response to US electoral results. 

The stock market gurus believe generally Pakistan’s stock market is not impacted by what’s happening on the international arena. However the major reason of Pakistan stock market’s showing resilience is the trust of the investors on Pakistani market.

“Generally there is an impression in the minds of the people of Pakistan as well as the investors that whoever becomes the US President, its policy will not change for Pakistan. This is the reason Trump’s victory has not created any impact on Pakistan Stock Exchange”, commented the stock market gurus. According to the stock market analysts, with the commencement of China Pakistan Economic Corridor (CPEC) the investors are showing interests in investing in Pakistani market.  Even the Pakistan Stock Exchange has been given the status of ‘Emerging Market’. This is the only market in the world which has grown by 400 per cent in the last five years.