Skip to main content

Market Overview

Here Is How A Trump Win Affects Pakistani Markets

Share:
Here Is How A Trump Win Affects Pakistani Markets

Donald Trump as U.S. president could mean “an overhaul in the US-Pak relations,” analysts at AKD Research said in a report. According to the report, “In this backdrop, Pakistan has done well by diversifying its foreign relations towards Russia and China’s ongoing ambitions in besting heavily into Pakistan.”

Although Pakistan’s stock exchange could be volatile in the near term, the Pakistani market’s correlation with regional markets has decoupled while momentum in infrastructure and economic development have resulted in a 21 percent gain in the KSE100, which may continue in the medium to long term, the analysts mentioned.

Implications For Pakistan

The AKD Research mentioned the following possible implications for Pakistan:

  • Lower aid from the United States: Economic assistance may stagnate at the current levels and military aid may be significantly scaled back.
  • Macro implications: Any trade facilitation to Pakistan continues to be unlikely under Trump’s presidency. Moreover, investment from the United States could also be low. The United States may impose stricter immigration rules, affecting remittance flows form the United States.
  • Rate hikes: Trump becoming president may fuel expectations of faster rate hikes, which impacts foreign flows to Pakistan.

“[T]he Pakistan P/E discount to regional markets remains sizable, while D/Y [dividend yield] is attractive and expected to continue attracting interest,” the analysts commented.

 

Related Articles (SPY + SPX)

View Comments and Join the Discussion!

Posted-In: 2016 presidential electionAnalyst Color Emerging Markets Politics Global Economics Markets General Best of Benzinga

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com