PSX likely to gain upto 1500 points in first session after no-trust motion
Business
Pakistan Stock Exchange on Friday had gained 1.5 percent or 657 points.
KARACHI (Haris Zamir) - Pakistan Stock Market to record a bullish rally and rupee to recover sharply on first session after no-confidence move got successful, where analysts believed that the index to gain as much as 1500 points and rupee to appreciate by 2 percent.
The Pakistan Stock Exchange on Friday had gained 1.5 percent or 657 points to close at 44,444 points and rupee gained 1.90 percent or Rs 3.50 to close at Rs184.68.
The appreciation was due to Supreme Court’s ruling declaring Deputy Speaker’s ruling as null and void disallowing the Members of National Assembly to vote on ousting Imran Khan.
There has been general belief that index and rupee will witness gains in short term but challenges on economic fronts are quite scary and need immediate steps to sustain gains. External debt is to be addressed on war footing basis.
Muhammad Saeed Khalid, Chief Economist Adam Securities said that as we have history in past that whenever PMLN has taken the seat, the stock market has become an investment avenue for investors.
In my view by December 2022 index will be around 53,000 points, Khalid said.
On forex side, it will take time to revive the economic performance along with other macros., he said. Since we all know Pakistan has lots of debt and in my belief during FY22 we have to pay more external debts which may continue to plunge PKR for some time but ÙSD will be depreciated soon, Khalid said.
"Fall of Imran Khan is taken as positive development by the market but the economy is in a bad shape", said Faizan Munshey Associate Director KASB KTrade Securities.
The market might go up temporarily but will fall again soon, he said.
"We expect investor class to greet the appointment of Shehbaz Sharif as Prime Minister at PSX", said Faisal Shaji, Chief Strategist Standard Capital Securities.
"We also expect PKR Dollar parity to be below 180 in few days." said Shaji. Shehbaz Sharif likely to be proactive in economic decisions, he said.
Yawar Uz Zaman, Head of Equities at Pearl Securities said that the markets hate uncertainty.
The end of a recent political chaos will likely be celebrated at PSX. The index could gain +500pts in the initial trading hours while PKR will be strengthen against USD by 2-3% in coming days, Zaman said.
