The upward adjustment in policy rates, some favorable to mini-budget recommendations and foreign exchange inflows, have pushed up the upward trend in the Pakistan Stock Exchange (PSX), with foreign traders making a very positive recovery.
Foreign investors were the main net buyers for the second consecutive week, eliminating $ 12.3 million worth of shares. The KSE-100 index achieved 848 points (2.1%) during the week, as market activities also remained high during the week, with daily volumes increasing by 3.8% from WoW to 175 million shares has.
Foreign Traders Making Their Comeback On Positive Note In PSX
The index was mainly driven by banks, oil traders, car collectors and oil exploration and production companies (E & Ps), which were 234 points (28%), 129 points (15%), 83 points (10%) and 74 points. (9%) respectively in the benchmark.
Banks remain in the spotlight, with a return of 2.2% during the week due to foreign purchases, a surprising increase in policy rates by 25 basis points to 10.25% and the tacit signal SBP of a larger monetary adaptation in the future. This will be good for bankers who propose growth in interest rates.
Motor mechanics returned 6.4% during the week due to the recommendation of the Supplementary Budget to eliminate the ban on non-filers to purchase up to 1,300 cc cars and tough policy gaps to import cars. Pak Suzuki Motors (PSMC), which was the main beneficiary of the ban, increased by 27.6% during the week.
The WTO and refineries returned during the week due to a total ban on the import of oil.
Central bank reserves increased by $ 1.5 billion (23%) to $ 7.0 billion, led by $ 2 billion in revenue from Saudi Arabia and the United Arab Emirates, where foreign debt and official payments were an increase in bookings or lower. This created a favorable stock market situation.
The index achieved a cumulative 10.9% during 2019, backed by strong buying interest, mainly from foreigners. With the American FED UU. Withholding interest rates and increasing doubts about higher interest rates, overseas sales may also remain silent.
However, it may continue to worry about the IMF not coming soon due to the immediate funding (sourced from the UAE and Saudi Arabia) and ongoing discussions on the future course of political action program.
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