Kalistan

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KalSiE Continues 35 day streak
Finishes November up more than 4 percent over October
Kaliburg, Grand Duchy of Ananto
November 27, 5641


KalSiE opens up for 35th trading day, to mark significant gains into mid fourth quarter

"Capitalists in Kalistan are ecstatic," said market analyst Joan Phillips of the Kaliburg brokerage SJDM. "This rally, which really began in mid August, seems to be picking up some steam, and has already put us into positive territory for the year." Investors, speaking with their money, say they have cross-sector confidence in the Kalistani economy, going into 5642 and have together pushed the market up 4% over October, and are going into December 2.3% in the black over 5641.

"Investors began moving money back into stocks in June, actually," said Phillips. "The Empress' declaration that Kalistan was in retrenchment mode and would be focusing on addressing budget shortfalls created some motivation for private capital to start investing for private securities, which has largely been dragging along at a sluggish pace for the last few years." But Phillips said this announcement was a drop in the bucket compared to the news in August that Kalistan and Lodamun were parting ways. "That decision was essentially a flood gate opening for Kalistani investors. Not only did it resolve uncertainty around Lodamun's in/out status over the last six decades, but it also signaled a serious focus on domestic development by both the National Government and Major institutional investors like Miramar." If the Empress is willing to put her money behind Kalistani enterprise, others gained confidence that they would too.

"The main reason however is that it works kind of like mergers. When one company buys another, its own stock price goes down as it assumes the fiduciary responsibilities of the other one. When companies break up, it almost works in an opposite fashion: Kalistan shed any perceived imperial responsibility for Lodamun. In Lodamun this would have a depressing effect on their stock market, and they have apparently mostly been able to absorb the cost of taking up the responsibilities they had previously shunted off to the Empire, but in Kalistan it's like a weight is being lifted from the shoulders of the nation, and the positive response is palpable."

As new money comes flooding in, major investments are being made in infrastructure, consumer industries like KalMD and MoCo, and commodities such as food, textiles and fuel. "It's pretty much been green across the board for a few months now," said Phillips. "The divorce is forcing Kalistani industries to be leaner and more efficient and the government has indicated a real willingness to begin looking for additional sources of imports and markets for exports in Northern Seleya as the ability to just trust that Lodamun will always be there is slowly fading from institutional memory. This means we will continue to trade with Lodamun, but won't just automatically assume anything, but it also allows us to consider other partners, whether it be to increase trade flows to and from Gaduridos through a newly opening Baltusia, or to divert a significant portion of formerly Lodamese locked trade to emerging markets in Baltusia and Valruzia. We are also increasing trade to and from Dolgava, and are seeing increased demand as Artania re-emerges from decades of destructive warfare.

Phillips said that the Imperial Bank will likely let the growth in the market continued unchecked into 5642, but will eventually put the clamps on the growth, if human nature doesn't do it for us. "The Imperial Bank will want to protect against both inflation and speculative bubbles. If one appears to be growing in any sector, expect the Imperial Bank to take steps to discourage further investment in that sector." Even if speculation is not immediately evident, the Imperial Bank may try to tinker with fiscal policy to slow growth of the Stock Exchange. "We usually don't know when a speculative bubble is happening until it has happened," said Phillips. "But for now, the bank would like to see more individuals take money out of storage in the bank, and start putting it back into the economy."

As an indication of the growing sense of prosperity across the economy, new car sales are up 2.5% on the year and local developer Sun Coast has reinvigorated plans to begin developing south of Sulari as a resort destination. Not only does Sun Coast have buy in from Miramar, but Miramar is behind a ₭120 Million Ruble plan to expand Sulari International by including an additional 30 International gates, as well as a new Commercial hanger. The airport expansion will take about 5 years and is currently nearly done with purchasing property around the current airport for the expansion.

Deputies of all political stripes praised the developments.

@TheRepublic