Pakistan stocks close on positive note on weekend
The KSE-100 index recorded an increase of 574 points to close at 38585 points.
KARACHI (Dunya News) - The capital market on weekend closed on positive note following positive development on the economic front after arrival of financial assistance from Saudi Arabia and assurance from Asian Development Bank to loan Pakistan for three years to improve energy, water and other social sectors.
The stock market opened on the positive note and remained glue to positive column because of host positive happenings at the financial horizon. Asian Development assured Pakistan that they would provide nearly 7.5 billion dollars to improve various sectors where most of the assistance would be provided to energy, financial and water sectors. Asian Development Bank main concerns has been that the country should improve its distribution and transmission network inorder to reduce losses which has been one of the main reasons whopping circular debt.
The run up at the stock further strengthened following the confirmation from the State Bank that Pakistan has received $1 billion as the second tranche from the Saudi Arabia to help boost foreign exchange reserves. From the first installment from Saudi Arabia, reserves have been depleted by same amount because of external debt and interest payments.
Losses during the last three sessions was almost 1218 points, and on last working session of the week, index recorded a healthy recovery of almost 40 percent led by brisk activity in the auto, cement, banks, chemical and some selected shares of oil and gas exploration. According to analyst there was no big development in any sector, the buying euphoria only build up due to release of funding from the brotherly country and that companies during the recent downward shares lost more than 40 to 50 percent in their share values, now enticing domestic investors.
The KSE-100 index recorded an increase of 574 points to close at 38585 points.
On the other hand, dollar in open market and at interbank remained unchanged at Rs 140 and Rs 138.90 levels. The market has been anxiously waiting for some big development at the financial market to stay.
However, one leading trader of the bank said it appears from the developments and State Bank of Pakistan Governor Tariq Bajwa briefing at National Assembly Standing committee hints that now the currency has found these levels and currency rate to remain peg at these levels.
Details by Haris Zamir
