Great changes happened within the time period of just two years. When I was entered in the stock market with my investment, I noted that the index for the stock market was around 60,000.
I did have some shares, such as DGKC, OGDC, PPL. The prices of these shares were extremely high when the index was around 60,000, but now, as of 2024, the Pakistan stock market has reached its all-time high and now crosses 109,478 points as of December 9, a record high.
The index gained around 814.9 points with a 0.75% increase. This is really amazing to see that. The stock market doubled within just two years of time period.
However, the shares which were at an all-time high two years ago now are standing with their lowest prices. I don't think why it happens.
The DGKC cement share, which I bought at 120 PKR, is now around 70 PKR, which means that it's almost 70 to 80% down, even though the index reaches its all-time high.
The main reason is market manipulation. This is how rich investors take specific shares upside, which helps the index to go up. Also, large companies and institutions keep on buying all those shares which are the collective decision of all of them.
That is why stock market and other financial markets could be manipulated easily. I prefer the crypto market. Although there is manipulation as well, but still I like it because of its huge volume. The huge volume helps the manipulation to not affect too much.
This is an important topic to discuss with you investors, because all those financial investors must know these things and keep in mind why, if an index is too high, the blue-chip shares are down.
It's essential to understand the dynamics of the market and be aware of the potential for manipulation.
What do you people think about market manipulation? Is it a kind of unfair trading? Will be glad to see your answers in the comment section.
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
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