Stock market gains 261 points

The government has planned to start the construction of Diamier Basha Dam from June 2019

KARACHI (Dunya News) – The stock market recorded sharp recovery before the close of the market as financial institutions and mutual funds took opportunity of the downward slide witnessed in the outgoing week under the lead of cement shares over the news that likely to commence Daimler Basha Dam for June 2019.

The KSE-100 Index closed today at 38562.05 points as compared to 38300.63 points on the last working day with a positive change of 261.42 points.

“Nothing has been changed from Thursday horizon, the country has same economic issues rather several numbers deter the investment especially the foreign exchange reserves, which has been continuously on the downward slide”, an analyst said.

The market opened on a negative note and registered a session low of 37771 points, losing nearly 522 points. However, some short covering from the financial institutions and fresh buying from mutual funds in selected scrips belonging to auto, banks, cement, fertilizer and oil and exploration sectors turned table and the market closed on a positive note. However, during the week investors mostly stayed from the market because of the statement from the Prime Minister Imran Khan that election could be held mid-term. This was enough to rock the investors’ confidence.

However, two developments during the session supported the market and helped improved the share prices. The government has planned to start the construction of Diamier Basha Dam from June 2019 pulled the investors and placing fresh deals in the cement stocks. Because the start construction to increase the sales and factor which helped Kelectric to show recovery was the Prime Minister Imran Khan statement welcoming Shanghai Electric plans to invest in the country. The Prime Minister said the government will support foreign investors and will provide incentive to increase investment.

On the othe hand, Pakistan rupee has been sliding slowly and for the last three days currency suffered depreciation. Dollar on Friday closed at 138.89 rupee compared with 138.74 of Thursday. Rupee in last three sessions has been depreciated by Rs 1.11. While currency taking cue from the interbank, in the open market also recorded appreciation and dollar at open market closed at 139.60 a slide of almost 30 paisa.

The currency market needs support from the government and the State Bank of Pakistan and starving for dollars. Financial support lacked and the only option left to support the economy has been IMF package. Though talks to held middle next month the continuous interest and principle debt payment on foreign loans unnerving the players, said an analyst.

Details by Haris Zamir