Stock economic – Jamiron http://jamiron.net/ Thu, 12 May 2022 06:48:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://jamiron.net/wp-content/uploads/2021/10/icon-20-120x120.png Stock economic – Jamiron http://jamiron.net/ 32 32 Concor share price: Concor shares fall as Nifty falls https://jamiron.net/concor-share-price-concor-shares-fall-as-nifty-falls/ Thu, 12 May 2022 06:32:00 +0000 https://jamiron.net/concor-share-price-concor-shares-fall-as-nifty-falls/ Shares of Container Corporation of India Ltd. slipped 1.57% to Rs 596.25 in Thursday trading at 12:02 p.m. (IST). It reached a maximum of Rs 605.4 and a minimum of Rs 585.3 during the session. The stock quoted a 52-week high of Rs 754.1 and a low of Rs 555.1. Return on equity for the […]]]>
Shares of Container Corporation of India Ltd. slipped 1.57% to Rs 596.25 in Thursday trading at 12:02 p.m. (IST). It reached a maximum of Rs 605.4 and a minimum of Rs 585.3 during the session.

The stock quoted a 52-week high of Rs 754.1 and a low of Rs 555.1. Return on equity for the stock was 4.95%. Around 31,778 shares have changed hands on the counter so far.

The stock’s beta, which measures its volatility relative to the broader market, was 0.88.

The certificate has been an underperformer, down 0.26% in the past year compared to a 9.07% gain in Sensex.

Techniques

On the technical charts, the stock’s 200-day moving average (DMA) stood at Rs 555.1 on May 12, while the 50-DMA stood at Rs 636.67. If a stock is trading well above 50-DMA and 200-DMA, it usually means that the immediate trend is up. On the other hand, if the stock is trading well below 50-DMA and 200-DMA at the same time, it is considered to be in a downtrend and if it is trading between these averages, it suggests that the stock can go both ways.

Promoter/Fii Holding

The promoters held 54.8% of the capital of Container Corporation of India Ltd. as of March 31, 2022. Mutual funds and foreign institutional investors held 12.8% and 23.54% of the capital respectively.

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Volatility – In the markets or in our heads? https://jamiron.net/volatility-in-the-markets-or-in-our-heads/ Tue, 10 May 2022 06:32:00 +0000 https://jamiron.net/volatility-in-the-markets-or-in-our-heads/ Volatility is a word that makes most investors shiver! But seasoned investors don’t see market volatility as an enemy; rather, they like volatility. Investment volatility refers to the rate of change or fluctuations in the price of an asset over a period of time. Volatility is a function of various factors: economic outlook, interest rates, […]]]>
Volatility is a word that makes most investors shiver! But seasoned investors don’t see market volatility as an enemy; rather, they like volatility.

Investment volatility refers to the rate of change or fluctuations in the price of an asset over a period of time. Volatility is a function of various factors: economic outlook, interest rates, geopolitical situations, weather or calamity, war, terrorism, macro environment, supply and demand levels, micro level business performance and outlook, among others factors. However, many of these factors are not permanent and will usually disappear within months or years. Moreover, these macro and micro factors are hardly within the control of an investor.

How does a typical investor behave? When the markets are rising, investors tend to invest more and more money in the stock market. Seeing other people around you, more and more people are investing in stock markets or mutual funds. The higher the market goes, the more money is invested. When the market starts falling, people start exiting their investments and the resulting contagion effect lowers the value of the investment. This is what happened in March 2020 during the first confinement. Many investors exited their investments with larger losses, while others preferred to stay on the close until the markets recovered. However, few smart investors have taken the opportunity and invested their money to achieve multi-bagger returns. The data suggests that more dematerialized accounts and mutual fund folios were created much later, starting in mid-2021; they lost great upside potential due to volatility in their minds, not market volatility.

To clarify my point, take a look at the Sensex chart since 1991. The chart plots all major events for the past 31 years. You can see that all of the crises were bigger than the previous ones, and the resulting market drops during those times were also bigger. History has also proven that the market has created new highs after every major drop. The maximum recovery time the market took to create new highs was 6 to 36 months. This clearly shows that market volatility is temporary but growth is permanent.

Spotlight on ET

Equity investment is considered a speculative asset by investors; as such, they tend to like stocks rather than espouse them. For example, when investing in stocks or mutual funds, investors usually decide on the exit date or target price in mind. But do investors always keep a target price or exit date in mind when investing in real estate or gold? The answer is almost always negative. This is the main reason why you get better returns when investing in real estate and gold. Real estate and gold prices fluctuate, but you rarely check this as often as you would your stock investments. It’s simply because you haven’t set a target price or exit time when investing in these non-stock assets. So, is it so hard to marry a stock mutual fund?

Extensive research over the years has shown that stock indices have outperformed bonds, real estate and gold over various periods of 10+ years. While the performance of the indices beat that of bonds, insurance, real estate and gold, the mutual funds were able to beat even their respective indices over the same period, with an impressive track record of more than 25 years.

So when the markets are volatile, remember to have a stable long-term investor mindset and consider investing more during those times. Your investments will only increase over time.

Opinions are personal: the author, Bhavesh Damania is the founder of Wisdom Edge Investments

Warning: The opinions expressed are those of the author and are personal. TAML may or may not subscribe to the same. The opinions expressed in this article/video in no way attempt to predict or time the markets. The opinions expressed are for informational purposes only and do not constitute investment, legal or tax advice. Any action taken by you based on the information contained herein is your sole responsibility and Tata Asset Management will not be liable in any way for the consequences of any such action taken by you.

Investments in mutual funds are subject to market risk, read all plan documents carefully.

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Economic recovery policy has become essential for China https://jamiron.net/economic-recovery-policy-has-become-essential-for-china/ Sun, 08 May 2022 13:24:18 +0000 https://jamiron.net/economic-recovery-policy-has-become-essential-for-china/ Who are these five billion alpha dreamers around the world? are they globally connected, mostly silent and invisible among billions of people around the world? How did they slowly come together to form the “most informed bloc” of global audiences that has ever existed in human history? What are their main objectives and what are […]]]>

Who are these five billion alpha dreamers around the world? are they globally connected, mostly silent and invisible among billions of people around the world? How did they slowly come together to form the “most informed bloc” of global audiences that has ever existed in human history? What are their main objectives and what are their targeted objectives? On the surface, they yearn for the common good and grassroots prosperity.

A new global consciousness is emerging; at this point, their lights and world influences are mostly unknown to them, accidentally and randomly stumbling across the knowledge of the world, bringing them here, as if simply growing a new world forest. A super-powerful popular force, their goals will slowly fortify themselves as a manageable world opinion, in pursuit of the common good. Not to be confused with a regular age-based generation labeled by academia; it’s more like the sum total of humanity’s intelligence once the hyper-interconnectedness has created its own new global voice, indispensable for addressing global challenges. The storm of new national elections faces a new world opinion, but how?

The old flat earth is missing: Once our ancient world believed that the earth was flat, today our world is also at the same point but needs a drastic change. Metal tubes with lenses in clever hands with special vision changed the fear of falling from flatness to accepting a spherically rotating universe. The Renaissance has happened, new worlds have been discovered, new lights have arrived. Millions of commoners have confined themselves but change has come. Unstoppable was the strength of humanity.

Observe our visible damage: Throughout the free world, there is a lack of depth in the school of political science, there is a void in the structuring of government, and there is a distinct void in national leadership of sorts. Lacks of grassroots prosperity and social justice are generally visible as global damage to global citizenship. Therefore, this is the global opinion of ordinary people on the common streets of the world, connected through the common thread of digital communication. They are ‘Alpha’ because they are the first thinking force and ‘Dreamers’ because they are the first big groups dreaming of change. Alpha dreamers for the first time have enough on-going knowledge to come up with better solutions than the old schools and failing institutions of our time.

Listen to the distant noise: Over the past two decades, societies large, small, rich and poor around the world have increasingly had individual digital connections, slowly transforming into local voices and opinions bouncing to local, regional, national and now global levels. Observe the similarity of answers to all questions about world affairs on any ordinary street all over the world. Notice the hardening of opinion and the display of diverse but sharp current knowledge on the subject. Thanks to the unstoppable global rains and thunderstorms of social media technologies. Local public opinion that once dominated and controlled the narratives of local election experts around the world is now being swept away by global opinion and a stark new warning of the lack of understanding of an interconnected global era.

Humanity is diverse and tolerant: Such a mature understanding of the problems of the world age by the world masses still largely seeks diversity, tolerance and peace. However, openly identifies the lack of grassroots prosperity as the number one problem while also acknowledging the vested interests behind all the chaos. The tribalization of local communities as special agenda planning is openly visible in developed economies. However, the world’s global population is restless, according to the Carnegie Endowment of International Peace, showing around the world some 230 protests in some 110 countries in recent times. Most protests are about political discourse demanding economic well-being and rarely about attacking other nations.

Children of 2000: Overall, children born in 2000, now 22 years old, under the age of the Internet, already have much more “world knowledge”. Centuries ago it took almost 100 years to gain knowledge about the world and those lucky ones with some global understanding spoke only a few last words of wisdom on their deathbed. Therefore, flat earth believers have lasted for millennia.

Humanity is not animality: Today, the ‘children of the year 2000’ alone possess far more global knowledge at such an early age than any previous civilization ever created. Therefore, it is possible that only one generation in the years to come will be equipped enough to decide the future of humanity on the broken old systems that are now openly destroying all major functionality of humanity. Humanity is not animality. “Excerpts from the ‘Children of 2000’ pamphlets published in 1985, followed by a series of lectures by Naseem Javed” Study more ‘Population-Rich Nations’ and ‘Knowledge-Rich Nations’ on Google.

Notice the silence in the roundhouses: Today, openly visible economic damage, openly exposed skill levels, lack of social justice and measured basic economics. Only five-star triple blanket economies, in the hands of addicted fake cash driving the world like crash test dummies towards nuclear war as if in a comedy episode, a Netflix series finale set for new colonies on Mars. No thanks. Humanity has a long way to go, let’s all go together.

National Mobilization of Hidden Talents: Observe how Imran Khan of Pakistan has mobilized and connected with the nation and how digitized nations are now oceans of connected public opinion. Notice how 100 other nations are in similar situations, beating old-fashioned political pundits for ignoring global age issues. The youth of the world needs a national mobilization of entrepreneurship to elevate the local economy of small and medium enterprises, women and untapped citizens of the world are tired of incompetence in economic development. It’s a digitized world now. Investigate more on Google.

Why is the United States not alone? In 2022 alone, around the world, some 35 other nations will also go through national elections. Here is the list, in no particular order, Sweden, Australia, Brazil, Hungary, Philippines, Tunisia, Somalia, Chad, Libya, Mali, Gambia, and Republic of Congo, Senegal, Angola, Kenya, Sao Tome and Principe, Equatorial Guinea, Haiti , Costa Rica, Colombia, Lebanon, Bahrain, Serbia, Slovenia, Malta, Latvia, Bosnia and Herzegovina, Nauru, Fiji, Cook Islands and Papua New Guinea.

The eye of the storm: The 2022 United States midterm elections take place on Tuesday, November 8, 2022. There are 435 seats in the House of Representatives and 34 of the 100 Senate seats contested. Thirty-nine state and territorial governors and numerous other state and local elections were contested. There are victories in the air, there are defeats in the breeze, a cyclone of uncertainty is building and the blizzard of economic frost awaits. Are Americans also becoming wiser and more connected to the world?

What is planned for a radical change? When billions are in motion to vote, choose, lose or decide, listen to the tectonic changes, certain peace repairs or certain wars created. Wars have never been decided by mobs of citizens advancing on other nations, only leadership as economic policy decisions. Our interconnectedness, humanity’s gift, the green economy, has put Lorenz’s chaos theory to the test; the flapping wings of a butterfly caused a cyclone in distant lands. Watch out, when a strategic push of a few small things suddenly sweeps across the world, creating the perfect storm of our time. A great change is now essential because a new era will break out.

Select an action plan: Will the Internet Kill Switch or Complete Elimination of Electricity Save Today’s Lingering Power? Will there be bold open national debates or an anaconda of silence will strangle all discussion? Will riot gear become the priority of budget items over basic prosperity issues? Will the connected alpha dreamer pick better options and vote smart? Nevertheless, critical thinking will eventually become common thinking; humanity is still resilient, otherwise it lives in caves. Choose wisely. The rest is easy.

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L&T Infotech Mindtree Merger: L&T Infotech Announces Merger with Mindtree https://jamiron.net/lt-infotech-mindtree-merger-lt-infotech-announces-merger-with-mindtree/ Fri, 06 May 2022 11:48:00 +0000 https://jamiron.net/lt-infotech-mindtree-merger-lt-infotech-announces-merger-with-mindtree/ NEW DELHI: The board of Larsen & Toubro Infotech (LTI) on Friday approved a plan to merge with Mindtree, creating a $3.5 billion IT services provider. Both companies are subsidiaries of Larsen & Toubro. The deal, which is expected to close in 9 to 12 months, does not involve any cash consideration. Larsen & Toubro […]]]>
NEW DELHI: The board of Larsen & Toubro Infotech (LTI) on Friday approved a plan to merge with Mindtree, creating a $3.5 billion IT services provider. Both companies are subsidiaries of Larsen & Toubro.

The deal, which is expected to close in 9 to 12 months, does not involve any cash consideration. Larsen & Toubro Infotech said it will issue and allot 73 fully paid shares with a par value of Re 1 each of the company for every 100 fully paid shares with a par value of Rs 10 in the merging company.

DC Chatterjee will lead the combined entity, which will be known as LTIMindtree. L&T Infotech Managing Director Sanjay Jalona has resigned for personal reasons.

The two companies will continue to operate independently for the time being, L&T Infotech said, adding that there will be minimal overlap between the two companies.

The move is seen as giving the combined company the opportunity to consolidate its position in the banking, financial services and insurance (BFSI) vertical, improve its scale in high-growth verticals such as high tech and consumer packaged goods, retail and to expand into new verticals such as travel, transportation and hospitality.

Larsen & Toubro Infotech said the combined company should have improved financial strength.

“In particular, the companies believe that the combined business will increase industry-leading revenue growth and profitability. In addition, the companies expect their combined balance sheet to provide diverse strategic options and flexibility resulting cost savings and synergies such as optimization of sales, general and administrative costs, consolidation of delivery operations and overseas branches,” said Larsen & Toubro Infotech.

The combined company should be able to bid for larger transactions and also conduct a consistent “go-to-market” strategy across the globe,” L&T Infotech said.

The merger should allow the combined company to reap benefits by creating more opportunities for growth in customer relationships through an increased focus on brand building, Larsen & Toubro Infotech said.

The company said this will allow the combined business to cross-sell and up-sell within a single combined business, reach more active customers, cater to a broader customer base and diversify. their revenue profile combined with reduced concentration risk.

Agencies

The promoter’s stake in L&T Infotech will increase from 60.99% after the merger to 68.73% currently. The scheme is subject to the approval of the required majority of the members and/or creditors of the company, and the necessary non-objection of the stock exchange and the sanction of the Mumbai and Bangalore benches of the NCLT.

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Sri Lanka shares fall on political and economic concerns https://jamiron.net/sri-lanka-shares-fall-on-political-and-economic-concerns/ Wed, 04 May 2022 15:20:20 +0000 https://jamiron.net/sri-lanka-shares-fall-on-political-and-economic-concerns/ ECONOMYNEXT – Sri Lanka’s main stock index fell 0.34% on Wednesday (04), the first trading day of this week, as optimism eroded amid political and economic uncertainties amid a persistent protest to oust the country’s leaders and the rapid depreciation of the rupee, dealers mentioned. The main All Share Price Index (ASPI) fell 26.22 points […]]]>

ECONOMYNEXT – Sri Lanka’s main stock index fell 0.34% on Wednesday (04), the first trading day of this week, as optimism eroded amid political and economic uncertainties amid a persistent protest to oust the country’s leaders and the rapid depreciation of the rupee, dealers mentioned.

The main All Share Price Index (ASPI) fell 26.22 points to 7,598.04 at the close.

Sri Lankan Finance Minister Ali Sabry said on Wednesday that the country’s usable foreign exchange reserves had fallen to less than US$50 million, equivalent to less than a day’s import requirement. The 84.5 billion euro economy has already suspended foreign debt payments because it ran out of dollars.

Youth-led protests demanding the resignation of President Gotabaya Rajapaksa and his government continued for a 25th day near the presidential secretariat and the unrest deprived Rajapaksa of appearing in public. The protests have already led to the resignation of the cabinet and a central bank governor.

But the apolitical protesters demanded nothing less than Rajapaksa’s resignation, increasing political risks in the island nation which enjoyed strong political stability under the incumbent president until early April this year.

Meanwhile, the more liquid S&P SL20 index gained 0.07% or 1.75 points to close at 2,510.99.

The market has advanced over the past three sessions after emerging market investor Mark Mobius signaled strong optimism about bond and equity investments in Sri Lanka last week.

The first two days of the last trading week, the market closed within minutes of opening for trade due to the 10% circuit breaker.

Turnover for the day was 1.1 billion rupees, less than a quarter of this year’s average daily turnover of 4.5 billion rupees.

Investors are also concerned about the sharp drop in the rupee, which has fallen almost 80% since it was allowed to show flexibility on March 7.

The market lost 14.5% in March and 23% in April. Overall, the market has lost 37.8% so far this year after being one of the best stock markets in the world with a return of 80% last year.

Foreign investors bucked the trend and bought shares with a net worth of Rs 36.6 million. However, the market has seen a total outflow of Rs 1.3 billion since the start of the year.

Banks Expolanka, Vallible One and DFCC pushed the index lower on Wednesday.

Shares of Expolanka Holdings fell 2.8% to close at 164.75 rupees per share, Vallibel One ended down 7.4% at 32.50 rupees per share while DFCC bank fell 4 .6% to close at 41.30 rupees per share. (Colombo/May 4, 2022)

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The truth about the “economic crisis” https://jamiron.net/the-truth-about-the-economic-crisis/ Tue, 03 May 2022 01:30:46 +0000 https://jamiron.net/the-truth-about-the-economic-crisis/ Last week, at a social gathering, someone sipping an expensive single malt whiskey asked me how deep the economic crisis was. I just told him that if there was a real economic crisis or a big crisis looming, he wouldn’t be sipping whiskey here, but queuing for fuel or essential groceries. In Nepal, negativity sells […]]]>

Last week, at a social gathering, someone sipping an expensive single malt whiskey asked me how deep the economic crisis was. I just told him that if there was a real economic crisis or a big crisis looming, he wouldn’t be sipping whiskey here, but queuing for fuel or essential groceries. In Nepal, negativity sells well when virtually every conversation in family or society revolves around speaking ill of someone, society, ethnic groups, religious groups, caste, businesses or institutions. Therefore, it is nothing abnormal for people to talk about the end of the Nepalese economy this week or maybe the next. We well remember the ‘Nepal is going to be a failed state’ campaigners who built many houses and sent their children to expensive schools around the world selling the idea of ​​a failed state. Perhaps there is a whole new generation that will make a fortune talking about an economic crisis. To add to that, here are five reasons why the story of the economic crisis has spread like wildfire.

Why History Sells

First, the Sri Lankan crisis, which is completely different from that of Nepal, is being used to launch a veritable China-bashing frenzy; and in India, it has become awkward not to blame China for the Sri Lankan crisis. And why not put Nepal in the same bag? Even Indian media correspondents like Nikkei Asia Review have done this. Also, WhatsApp University in India and Hindi channels are easier to quote in Nepal because many fake news spreaders in Nepal are well versed in Hindi and never read English research reports published by the Bank. world, the International Monetary Fund or other international organizations. establishments. So Nepali people don’t need much effort just share messages from India in Hindi or just put Nepali translation and share. Media houses closely linked to the Indian federal government continue to make sensational news. News channels like India Today group’s Aaj Tak, known for sparking #GoBackIndianMedia, are back to their storytelling antics of Nepal’s economic crisis.

Secondly, there is not much research in Nepal that is sponsored by the private sector, as the sponsorship of events where alcohol is flowing and expensive entertainment takes priority over funding research institutions or the creation of internal research teams. Banks have an average market capitalization of $1 billion, but we don’t hear about in-depth analysis and research. Therefore, C-Suite people and board members depend on WhatsApp University and YouTube videos to tell the reporter what they think about the crisis, and they also tend to amplify the story. of the crisis.

Third, there is a liquidity crisis in the formal sector which is regulated by the central bank, but there is money available in unregulated cooperatives and informal cooperatives. Many of these cooperatives have links with people in the formal banking sector, so they can recommend where to get higher rates for deposits or high-interest loans. In a country where nearly a billion dollars of grafts accumulate each year, there is no problem of liquidity. It’s just that the formal sector has no money.

Fourth, in a country where trade rules and arbitration activities are protected by cartels under the guise of associations, people find something to praise in a crisis. Like how vegetables in the market suddenly become more expensive when news of a landslide arrives, it’s important how you come to spread the news of a crisis and get higher prices for them. goods in stock. Plus, you can get help from the government to stop imports and ensure you have a gala moment. So if you have a snack company that produces snacks with the same brand name as an Indian brand, you can get the government (of course you have to take care of the politicians) to ban their import as luxury items, and you can sell contraband for higher prices. Who said the crisis was bad for business? It’s just a good time to get rid of your stocks at higher prices due to the crisis and make sure that no new stock arrives for a while. Of course, after July 16 there is a new fiscal year and the rules will change again.

Finally, the crisis is a good time to find scapegoats and fire the people you don’t like. The finance minister tried to fire the central bank governor, but the Supreme Court made it impossible. In election-year coalition politics, it’s all about the money. It’s about who can pay to get someone fired. And then you can ask the other group to pay more for not shooting. It’s the best company to be in. And the multi-party mechanism is very effective in managing these win-win moments.

What awaits us

The International Monetary Fund and the World Bank have both made it clear why this is not a crisis that is projected. The Central Bureau of Statistics tells us that Nepalese are earning more money than in previous years. Formal remittances are increasing, but there is an equal amount of informal remittances which are now used to make payments at higher exchange rates as there are foreign currency restrictions. In an election year, we’ll see more populist agendas coming in, and we’ll see an increase in government spending in the last two months of the fiscal year, like in previous years, as only 28% of the spending budget of investment was spent in the first nine months.

In an environment where banks collude to fix exchange rates and interest rates, they are not indicative of the state of the economy as in other countries. As long as weddings and other social celebrations take place, as long as people spend money in restaurants, as long as people buy gold and jewelry, and as long as people don’t abandon construction projects , we must understand that there is no economic crisis.

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Navigating Turbulent Economic Waters | Political economics https://jamiron.net/navigating-turbulent-economic-waters-political-economics/ Sun, 01 May 2022 00:39:37 +0000 https://jamiron.net/navigating-turbulent-economic-waters-political-economics/ Prime Minister Shahbaz Sharif’s first official statement on the national economy strikes a chord: “The country is awash in debt, but we have to bring the boat back to shore… We have to overcome the challenges of poverty, unemployment and of inflation. The previous government failed miserably in its fight against these difficulties. Sharif’s assertion […]]]>

Prime Minister Shahbaz Sharif’s first official statement on the national economy strikes a chord: “The country is awash in debt, but we have to bring the boat back to shore… We have to overcome the challenges of poverty, unemployment and of inflation. The previous government failed miserably in its fight against these difficulties.

Sharif’s assertion that Imran Khan’s economic policies were an absolute disaster may only be half the truth. Blaming Khan for all the economic woes of the country is dangerous as it could blind the fact that Khan inherited several structural problems from the PML-N government, just as the PML-N government had inherited many economic problems from the PPP and Musharraf eras .

Now that a new government has been installed, the challenge is to objectively take stock of the problems and seek a way forward. Here we discuss what went wrong with Imran Khan’s economic policies, the challenges for the government and how best to manage the economy.

Imran Khan inherited several complex economic problems. The situation worsened considerably under his watch. Khan’s failure fundamentally lies in the inability of his economic managers to understand, let alone address, macroeconomic challenges. The PTI government inherited the currency crisis but had no effective plan to stem the free fall of the rupee against the dollar. Under the PTI government, the focus has been on using familiar shortcuts: opening capital accounts for speculative portfolio investments, encouraging unproductive real estate investments, and subsidizing a rentier economy favoring the elite.

Foreign investment comes in many shades and shades, with different economic implications. For example, long-term foreign investment in manufacturing has a different effect on economic fundamentals than heavy investment in debt and equity markets. A country must ensure a stable political environment, a reliable law and order situation, predictability and continuity of economic policies and regime changes to attract long-term investment in the manufacturing sector.

On the other hand, attracting foreign investment to the debt and equity market requires little more than an adjustment of policy rates. When things got tough for the PTI government, Pakistan followed the latter policy. Among the other factors that explained an influx of “hot money” (short-term foreign investments in the capital markets), the raising of the key rate above 13% by the central bank in 2019 was an important factor. This resulted in $4.1 billion in foreign investment in the debt and equity markets, with a large share in treasury bills (often close to 50% of total portfolio investment).

Khan also inherited a deep structural problem of low investment rates, which essentially means preferring current consumption to the detriment of future growth. Pakistan invests about 15% of its production, which is grossly insufficient and low even by regional standards. Other South Asian economies invest around 30% of their production. A direct consequence of Pakistan’s historically low rate of investment is that its economic productivity has remained at a suboptimal level, leaving it limited space for innovation and diversification of its product mix. In a recent article published in the New York TimesAtif Mian noted that Pakistan’s total export volume remains at 2005 levels.

Imran Khan inherited complex economic problems. Under him, the situation worsened considerably. Its failure fundamentally lies in the inability of its economic managers to understand, let alone address, the macroeconomic challenges.

With double-digit inflation and unemployment rates still high during the first phase of Covid-19, the PTI government was under immense pressure to provide quick relief to the masses. With limited fiscal space and near absence of a team of expert economic managers to redress economic fundamentals, the PTI government chose the quick-fix approach of providing grants under its Ehsaas program. . However, the subsidies that angered the IMF were more recent (announced in February this year) and linked to fuel prices and electricity tariffs.

Other economic problems that haunted the PTI government were the massive devaluation of the rupee and the huge debt burden. The devaluation of the rupiah under the PTI regime was unprecedented in the history of Pakistan. The PTI government also added about $27 billion to foreign debt, far more than the PML-N government.

When the economic fundamentals are weak, the currency is still likely to be under pressure. But under the PTI government, the rupee has experienced unprecedented episodes of devaluation. As Pakistan’s oil and food import bills rose, the steadily rising import bill triggered an unprecedented trade deficit, further eroding the value of the rupee. The most recent drop was triggered by an uncertain political situation and a stalled IMF program.

Governments turn to the IMF only when they cannot solve their economic problems themselves. IMF programs are often painful for the masses and exact a heavy political toll.

The current situation is that the IMF has set a number of preconditions to relaunch its Extended Financing Facility. The Sharif government has been urged to, among other things, raise fuel and utility prices, scrap tax amnesty programs for industries, reduce circular debt and show progress on the fiscal front. In particular, he must cancel the rescue plan of February 28 to receive the next tranche of the loan.

Finance Minister Miftah Ismail recently traveled to Washington to renegotiate the EFF. The IMF has reportedly agreed in principle to increase the current EFF from $6 billion to $8 billion and extend it for another year to help Pakistan deal with its balance of payments and foreign exchange reserves problems. . A formal decision in this regard will depend on the success of the technical talks which are currently underway. It seems that the IMF will not budge from its request to withdraw the subsidies announced by the PTI government.

The government currently pays a subsidy of Rs 21 per liter on petrol, Rs 51.52 on diesel and Rs 5 per unit of electricity. The finance minister has hinted that the government will phase out subsidies. Making it palatable will be a big challenge.

Pakistan’s economy is in dire straits due to a combination of factors including Covid-19 and the erratic economic policies of the PTI government. Ordinary people have been hit by soaring commodity prices. Bringing relief to them will be a big challenge for the government, but the most crucial challenge will be securing basic rights. Correcting economic trajectory will require balancing the long-term economic recovery and helping those most in need in the short term. It’s easier said than done.

The task of the current regime risks becoming insoluble as there does not appear to be any easing of inflationary tendencies. According to FAO forecasts, world food prices will reach an all-time high this summer. This will further drive up food prices in Pakistan and threaten food security. It’s almost a truism that food security threats and social unrest go hand in hand.

An equally virulent challenge for the government lies elsewhere. Skilfully playing religious and nationalist cards and calling for new elections, Imran Khan will leave little room for the government to make the tough decisions needed for economic recovery.


The author is Associate Professor in Department of Economics, COMSATS University Islamabad, Lahore Campus

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As stocks fall, economic fears rise, alongside inflation https://jamiron.net/as-stocks-fall-economic-fears-rise-alongside-inflation/ Fri, 29 Apr 2022 17:48:25 +0000 https://jamiron.net/as-stocks-fall-economic-fears-rise-alongside-inflation/ But in April, Fed officials began to change their minds, expressed in speeches and other public comments, about how quickly interest rates will need to rise to bring inflation under control, and economic projections of Wall Street have also changed. In the futures market, where traders are betting on possible interest rate hikes, the prevailing […]]]>

But in April, Fed officials began to change their minds, expressed in speeches and other public comments, about how quickly interest rates will need to rise to bring inflation under control, and economic projections of Wall Street have also changed. In the futures market, where traders are betting on possible interest rate hikes, the prevailing view is now that the Fed’s benchmark rate will climb to around 2% by July, which seemed unimaginable there. one more month.

For that to happen, the central bank would have to raise its key rate by half a percentage point at each of its next three meetings, and the fear is that such aggressive increases could trigger an economic crisis, rather than simply chill things enough to slow inflation but keep the economy growing.

“Every time the Fed has spoken, the markets have taken it quite negatively,” said Saira Malik, chief investment officer at Nuveen, a global investment manager. “Investors fear that with these multiple rate hikes, the Fed will cause a recession rather than a soft landing.”

Rising interest rates will affect consumer demand. Mortgage rates, for example, have already jumped to more than 5%, from 3.2% at the start of the year, swallowing up the budget of new home buyers. Other borrowing costs, ranging from consumer loans to corporate debt, will rise as the Fed raises its benchmark rate.

For now, many companies — from United Airlines to PepsiCo — are passing on rising costs and reporting that sales continue to rise.

Economists wonder how long this will last.

“There’s going to be a natural slowdown in spending, maybe before interest rates rise, as costs go up,” said Jean Boivin, director of the BlackRock Investment Institute. “The central bank will have to watch that very carefully because if that happens naturally and then you add interest rate increases, that’s how you get to a recessionary scenario.”

Broadly speaking, this week’s earnings reports showed that earnings growth continues. About 80% of S&P 500 companies that reported results through Thursday did better than expected, according to FactSet data.

But other companies have only added to the downdraft. Netflix plunged after saying last week that it expected to lose subscribers – 200,000 in the first three months of the year and another two million in the current quarter. The stock is down more than 46% for the month.

On Friday, Amazon fell 12% a day after the e-commerce giant reported its first quarterly loss since 2015, citing rising fuel and labor costs and warning that sales would slow. Its shares are down 22% this month.

General Electric warned on Tuesday that the economic fallout from Russia’s invasion of Ukraine would weigh on its bottom line. Its shares fell 10% that day and are down about 16% for the month.

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Asian Stocks Rise, More Chinese Economic Support Pledges Boost Sentiment By Investing.com https://jamiron.net/asian-stocks-rise-more-chinese-economic-support-pledges-boost-sentiment-by-investing-com/ Thu, 28 Apr 2022 02:38:00 +0000 https://jamiron.net/asian-stocks-rise-more-chinese-economic-support-pledges-boost-sentiment-by-investing-com/ © Reuters. By Gina Lee Investing.com – Asia-Pacific stocks were mostly up Thursday morning. US stock futures also rose and investor sentiment improved as . Japan gained 0.62% as of 22:26 ET (0226 GMT), rising 0.3% month-on-month and up 0.9% year-on-year. another in March 2022. That of South Korea increased by 0.45%. In Australia, the […]]]>

© Reuters.

By Gina Lee

Investing.com – Asia-Pacific stocks were mostly up Thursday morning. US stock futures also rose and investor sentiment improved as .

Japan gained 0.62% as of 22:26 ET (0226 GMT), rising 0.3% month-on-month and up 0.9% year-on-year. another in March 2022.

That of South Korea increased by 0.45%.

In Australia, the rise was 0.92%, as the country also released figures earlier in the day.

That of Hong Kong gained 0.51%.

China rose 0.49% while falling 0.95%.

In the United States, contracts for the increased by 1% and those for the also increased. Yields on Treasuries fell as investors also balanced the risks of high inflation and potentially aggressive policy tightening from the US Federal Reserve.

Chinese stocks traded in the United States also rose to their highest level since early April 2022, after China’s State Council pledged at its last meeting to stabilize employment. The meeting, chaired by Premier Li Keqiang, said stronger policy measures should be taken to boost employment, according to CCTV. Li added that stabilizing employment is a “key support” for keeping economic growth within an appropriate range.

The pledge follows that of the Central Committee for Financial and Economic Affairs to accelerate infrastructure construction at Tuesday’s meeting chaired by President Xi Jinping.

Market volatility persists amid China’s struggles with its latest COVID-19 outbreak, the ongoing war in Ukraine precipitated by the Russian invasion on Feb. 24, and growing concerns that Fed tightening could lead to a recession.

“The uncertainty factor is one of the highest we’ve seen in recent years,” Kate Moore, head of thematic strategy for BlackRock’s global allocation team, told Bloomberg.

“There are so many cross-currents. And in this context, it is difficult to see volatility decreasing dramatically.

However, there are hopes that strong US corporate earnings could improve investor confidence. Meta shares jumped 18% in extended trading as Facebook’s main social network added more users than expected.

Earnings from companies such as Amazon.com Inc. (NASDAQ:) and Apple Inc. (NASDAQ:), as well as US data, including that for the first quarter of 2022, are due later today.

In Asia-Pacific, the monetary policy will also be announced later in the day. The central bank is expected to keep key monetary metrics steady, though the yen’s rapid weakening to two-decade lows fuels market speculation about a possible policy or messaging adjustment.

The European Central Bank also publishes its economic bulletin later in the day.

On the commodity side, oil came close to the $102 mark. The black liquid is struggling to find its way amid Germany’s support for a phased ban over Russian crude and fuel demand concerns over China’s COVID-19 lockdowns.

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paytm: Paytm appoints new Group Head for Regulatory Affairs https://jamiron.net/paytm-paytm-appoints-new-group-head-for-regulatory-affairs/ Tue, 26 Apr 2022 09:33:36 +0000 https://jamiron.net/paytm-paytm-appoints-new-group-head-for-regulatory-affairs/ Bengaluru: One97 Communications Ltd (OCL), the parent entity of fintech Paytm, is strengthening its general management. He appointed Srinivas Yanamandra as Group Head for Regulatory Affairs and Policy. Yanamandra joins the Noida-based financial services company from New Development Bank in Shanghai, where he served as the head of the compliance division. Yanamandra has also worked […]]]>
Bengaluru: One97 Communications Ltd (OCL), the parent entity of fintech Paytm, is strengthening its general management.

He appointed Srinivas Yanamandra as Group Head for Regulatory Affairs and Policy.

Yanamandra joins the Noida-based financial services company from New Development Bank in Shanghai, where he served as the head of the compliance division.

Yanamandra has also worked with ICICI Bank and IDFC First Bank, focusing on aspects of banking regulation, governance, prudential reporting and risk management.

As part of its new role, Yanamandra will also ensure that Paytm, its subsidiaries and affiliates continue to implement improved compliance systems.

ET was first to report on March 29 that Paytm had hired Anuj Mittal as vice president of its investor relations division, in a bid to bolster its engagement with public markets analysts and investors, amid a fall in its share price.

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Paytm founder Vijay Shekhar Sharma said in a statement that Yanamandra’s expertise in the financial industry will further contribute to the rapid growth of the Paytm ecosystem.

Paytm shares fell around 4.3% to close at around 599 rupees each on BSE Monday.

“Paytm’s contribution to the Indian fintech landscape is exemplary, bolstered by business-friendly regulatory developments in the country. I am thrilled to be contributing to fuel the company’s journey as it continues to reach new milestones,” said Yanamandra.

Last month, the Reserve Bank of India (RBI) banned Paytm Payments Bank (PPB) from adding new users. The following week, ET announced that the central bank would set the terms of reference for an independent technology audit at the bank.

Currently, Sharma owns 51% of the bank, while the rest is owned by the listed entity.

This month, OCL filed its updated stake with Indian stock exchanges, in which it said foreign portfolio investors had reduced their stake in the company to 4.42% as of March 31, from 9.36% in the quarter ended December 31.

Retail investors, he told stock exchanges, increased their stake to 7.72% from 3.49% in the same period, while the Canada Pension Plan Investment Board (OIRPC) increased its stake to 1.71% from 1.57% previously.

When announcing its results for the quarter ended March 31, Paytm said it disbursed 6.5 million loans totaling 3,553 crore rupees (equivalent to approximately $474 million).

In the third fiscal quarter, Paytm had recorded 4.4 million loan disbursements on the platform. Additionally, it processed a merchant payment volume of Rs 2.59 lakh crore (or $34.5 billion) in the fourth quarter, the company said.

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