Stop Buying PIA Holding Company shares

[Amaad Lone]

News breaks of PIA resuming flights to Europe and shares of PIA Holding Company goes up.

Are these people stupid???

The Holdings Company listed on the stock exchange replaced the "operational PIA" and the current PIA has been delisted from the PSX. The holding company has 650 billion of PIA loans and some properties nothing else. The sale or revenue of PIA has nothing to do with the The Holding Company.

The government cheated the share holders of PIA. Stop buying PIA Holding Company shares.

[Karachi Aviator]

Embarrassing stuff. Same people were celebrating the stock market crossing 100,000 points when everyone knows that stock market isn't an indicator of how an economy performs.

[Amaad Lone]

Embarrassing stuff. Same people were celebrating the stock market crossing 100,000 points when everyone knows that stock market isn't an indicator of how an economy performs.

That is also not true. If the economy is doing well that means the companies on the stock exchange are doing well the market will rise.

In case of PSX there is a lot of manipulation.

Right now the banks have done super well, with 22 percent discount rate the banks raked in money but the industrial sector suffered.

Now the interest rates are falling and investors are hoping that industrial shares will do well so speculative buying.

The government has fixed the foreign exchange side of the economy. The country is running a current account surplus with exports and remittances averaging around 6 billion dollars a month and Imports are averaging around 4.7 billion dollars a month, allowing the State Bank to buy dollars and retire debt. Plus foreign exchange reserves have risen to 12 billion dollars or 2.5 months of imports.

[Karachi Aviator]

PSX / KSE is very manipulative. Influential elites can easily inflate the stock prices through artificial practices like insider trading. PIA itself is an example. How come the 'BAD PIA' which isn't even an operational company and has 650 billion PKR parked in it is seeing a rise in its share prices. Clearly indicates that some people are either actually dumb or are trying to manuplate things by inflating the stock prices for personal gains.

Stock prices are also meant to increase when businesses give out good dividends to it's shareholders and of course make good profits (alongside the demand and supply), that's certainly not happening in this case. How many actual core industrial businesses like in the textile industry have recorded good profits? I only see a fake demand being created in this scenario which inflates the prices of stocks of even poor performing business.

It's actually an illusion. People sell the narrative that the economy is doing well which leads to manipulation and artificial inflation of stock prices in the market whereas some people say: "look the economy is doing well because the stock exchange has surpassed a 'historic' 100,000 points in the market". In reality it seems like hoax.

At best, it's nothing more than speculation.

The debt to gdp ratio is still very high, inflation is still taking place, not 'deflation' which is what we actually need and unemployment is still a major issue. All this whilst the government has actually increased it's useless expenses rather than decreasing them.

At least in Pakistan's scenario, I don't see the stock exchange representing the state of our economy, especially also considering the poor regulation of the regulatory bodies who can't control these malpractices.

[AviationLover2020]

The debt to gdp ratio is still very high, inflation is still taking place, not 'deflation' which is what we actually need and unemployment is still a major issue. All this whilst the government has actually increased it's useless expenses rather than decreasing them.

Deflation will lead to a recession and layoffs, a decrease in tax revenue and an increase in real terms domestic debt. It’s not what we need, and it will cripple the economy. You need a healthy level of inflation, and wages to rise to match the new equilibrium after the inflationary shock of 22-23.

But the PSX and PIA Holding Co doing well is probably an act of manipulation (or stupid investors). Maybe even a combination of both - manipulators intentionally bought stock to drive activity in the PIA Holding Co, and innocent investors have been buying further shares ever since on this basis.