KSE index shoots up again

For about a week or so, the KSE 100-index has been plummetting to a low of a shade over 8700 but now the latest news is that it has again taken a hike and not only crossed the psychological barrier of 9000 but also ended a little over a 100 points above that. The influx has been caused by an increase in direct investment by foreigners who might have been hesitant to invest in the days before, given the recent wave of terror and the much hyped (not in a good way) NRO. This incident further highlights the importance of stability to a country's economy. Although the pernicious effects of instability are nothing new to Pakistan( the Lawyer's movement, remember and also the effects of every word of Musharraf's speech on KSE highs and lows), it is high time for us to give leeway to the economy to settle and have a smooth growth. Stock market, in particular, is vulnerable to such instability as most of the trading is based on anticipation.