PSX records remarkable gains on first day of trading week
Session was totally different and plus signs were visible on all the groups
KARACHI (Dunya News) – First session of the new week recorded remarkable gain of 3 percent, highest rise in two and half months on expectations United Arab Emirates promised to increase investment portfolio in Pakistan and would work on number of projects to help boost economy.
Pakistan stock market gained sharply by 1014 points to close at 38562 points with gainers led the column where 201 companies showed plus signs as against 102 witnessed minus signs.
Elixir Securities Director Research Hamad Aslam said that the exuberance was led by positive developments on financing the External Account Deficit after conclusion of a successful visit by the Crown Prince of UAE.
This further helped develop market consensus that the Current Account Deficit will significantly ease going forward – we expect the deficit to clock in at $11.6 billion and $7.7 billion in FY19 and FY20, respectively (from a high of USD19.0bn in FY18).
He said that the another major trigger for the market movement was the significant recovery in international crude oil prices which directly benefits roughly 15 percent of the KSE100 Index (i.e. OGDC, PPL, POL and MARI).
Session was totally different and plus signs were visible on all the groups of the listed at the local stock exchange where sizeable deals were registered in oil, cement, steel, banking and auto sectors.
The visit of the Crown Prince of UAE sent positive vibes to the stock players as they pinned hope that financial assistance and investment assurance in number of sectors especially setting of a refinery in Pakistan has been good omen.
Commitment from UAE to give $3 billion assistances for Pakistan bodes well and it showed that following the change in the government foreign countries have lot of faith on Prime Minister Imran Khan’s vision to put economy on track and reduce poverty.
Another factor behind the surge was the upcoming mini-budget which according to punters to bring some relief for the capital market players. The government is likely to reduce tax rate on buying and selling of shares by half to 0.1 percent. This step if approve will improve daily volume and will attract new flow of investment.
Details by Haris Zamir
