Over long term, stock market has delivered average annual returns of 15-20%, dividends and capital appreciation
Activity was mainly led by interest in oil stocks; bourse ends week just shy of 43,000
It has been less than six weeks since the KSE-100 index touched its peak levels of 170,000, and it has only fallen by about 6-8% since then. Yet investors have already started jittering, panicking, and losing hope.
People conveniently forget that the market is up nearly 60% in the last five months and more than 100% in the past 12 months before finding a new level that reflects its long-term "valuation" range of around 8x price-to-earnings (P/E). A company earning Rs1 a year is trading at a value of Rs8.
Excellent companies with strong outlooks are trading 20-25% below their rece
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