PSX rebounds on Asad Umar's statement about impending balance of payments crisis
The market rallied upon assurance by the Finance Minister related to Pakistan's external position
KARACHI (Dunya News) – Positive rally sets at the stock market on Wednesday following Finance Minister Asad Umar statement that brotherly countries have supported Pakistan and funding gap of US$12 billion has been met comfortably with promises that efforts will be taken to boost exports.
The market since its opening was in the positive frame of mind after Tuesday late evening press conference jointly conducted by Foreign Minister Shah Mahmood Qureshi and Finance Minister Asad Umar where the finance minister told media that the visit of China was successful.
On November 9, a team to be led by Governor State Bank of Pakistan Tariq Bajwa will leave for China and hold talks with the finance ministry officials to finalize modalities of package. Moreover he assured that Pakistan will ask the Chinese government to increase the share of exports by almost $1 billion.
The move from the government would beneficial for the textile companies, which was reflected in the share movement. Textile shares recorded increase of 25 paisa to Rs5.64.
Another factor which boosted the buying spree in auto sector was the media reports that a petition has been filed against the government’s decision to bar non-filers to buy vehicles. The shares of Pak Suzuki up by Rs10.95 and Honda Motors by Rs2.35 while Indus Motors were down Rs 6.
The market rallied upon assurance by the Finance Minister related to Pakistan s external position, said Shumaila Badar head of research at Ismail Iqbal Securities.
Cements also contributed to the Index s gains as news that the Government does not hold them responsible for recent cement price hike led to a rally in the sector. PSO was flat despite news that banks will provide loans to ease its circular debt situation. “We expect some profit booking in coming sessions”, she said.
