Kalistani Major History

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Kalsie rallies after cooling in tensions in Straits"Stepping back" has calmed fears of supply disruptions
Kaliburg, Ananto
April 12, 4705


Investors "cautiously optimistic" about news of calming tensions

Though the threat of international sanction from the World Congress still hangs over Kalistan, calming of more accute tensions in the Ananto Strait over Kalistan's reauthorization of Privateering act seems to have had a soothing effect on jittery investors.

"The Kalsie has experienced relatively flat performance over the last couple years," said Michael Thompson, President of the Kalsie Board of Directors.  "Some of the things we've noted were reluctance by normal investors to put money toward expansion of blue chip stocks like KNP and KNF, as well as weak interest in newer startups in Kalistan.  This has led to a stagnation and a 'hold in place' for our national industries, while it has been a difficult time finding investment for new projects."

Instead of playing in the Kalsie, investors have began buying bonds in the National Bank and driving the value of the Kalistani Ruble upward.  "So far, with the steps taken before the Crisis, investors have found a nice home in the rock solid Ruble and the ultra capitalized National Bank," said Thompson.  "Bank Balances are at an all time high, while the Ruble has experienced a modest appreciation in value due to the unwillingness of the Bank to water down the Rubles in circulation.  Most of those earnings on the Ruble and in the Bank have been enjoyed by Kalistani investors.  There is not much foreign interest in our currency at the moment, which seems to me to be a missed opportunity on their part."

A high valued Ruble allows consumers greater purchasing power at home, but with the reluctance to switch to securities, there's not much more to buy.  "I'd say Kalistan is meeting domestic demand.  Foreign demand, which has been choked off during the crisis, was not high for Kalistani goods and services anyway, so we haven't suffered much there.  But plans to expand production have been shelved for the time being."

The calming of tensions has been accompanied, however, with a slight, but noticeable uptick in the Kalsie.  "I think a few of the more adventurous investors are starting to hunt around for bargains.  A lot can be had in the market, and we welcome investors to come out and take a chance on the Kalsie again."

One particular sector which has begun to show signs of life in the private markets is the centuries old Kalistani tech company KalMD.  Responsible for a mini boom in the 4500s in Suldanor, KalMD once led the burgeoning Kalistani tech sector.  "A lot of that was squandered," explained Thompson, "because under Liberal Government, there was no support or active encouragement for it."  But KalMD has recently been acquired by the National Group, who invests usually in startup, and an agressive push to raise capital has already begun.  "Its yielding some effects:  this month, KMD stocks have risen 12 percent, and have outperformed market averages by 2-3 percent for the last three quarters."

Also in line for future reorganization is the Kalistani Motor Company, which used to be a Nationalized industry, but was quickly divested when it was discovered that the national functions of KMC could be performed more effectively under KalMilInCo (KMI).  KMC was responsible for the Kalistani brand "MoCo" which was nearly ubiquitous for a hundred years in Kalistan, and then fell on hard times as Liberals actively encouraged foreign trade, designed to completely supplant Kalistani industries.  KMC has recently been acquired by investment capitalist Susan Franco, and he has quickly adopted articles of incorporation and governance.  KMC expects to make an initial public offering sometime next year.

While performance in the Kalsie is still fairly lackluster, Republican foreign policy aimed at peace can only help it gain speed.