Why is stock market performing at its worst?

April 8, 2019 (MLN): The outgoing week was no different than the week prior to it. In fact, we saw more restlessness in the form of increase in petrol prices as well as further devaluation of rupee, says an independent economic expert Muzammil Aslam.

When there are low volumes in the stock market, anyone can easily take advantage and manipulate it, which makes it neither too cheap nor too expensive. In other words, the stock markets seems to lack direction nowadays.

The most important thing for a stock market is liquidity, which is absent from Pakistani equity markets these days. The reason behind this drop in liquidity is the ongoing scruffs of FBR, Benami laws, FATF etc., which has led to investor taking a back seat.

Another thing that's not going to help the market sentiment is the news that India is planning to do something on/around April 16/20, as suggested by the Foreign Minister Shah Mehmood Qureshi.

A market is supposed to have a buyer and a seller in order to maintain a healthy trading. Unfortunately, the problem is that the buyer power has diminished as our brokerage industry has failed to bring new investors in the market.

Moreover, the government is not doing enough to bring stabilization in the market, which has led to stock market being illiquid.

In short, the market will not show any improvement until and unless new investors and institutions are brought by the government to enhance buying power.

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