Daily Times

Pakistan Stock Exchange (PSX) remained on an upward slide for the third consecutive week, with the benchmark KSE-100 Index gaining 468.07 points (+0.72 percent) to close the week at 65,793.75 points.

The main factors behind this gain were formation of a new government, which ended political uncertainty in the country, and positive statements from the International Monetary Fund (IMF). Moreover, Pakistan’s bonds rallied in the international market and inflation came down to 23.1 percent in February from 28.3 percent a month ago. Those positive factors provided the required trigger to the stock market.

During the week under review, the bourse turned towards north on Monday and gained 626 points. The experts said that buying came as political volatility in the country cooled off, as Shehbaz Sharif was elected a day earlier as the prime minister of Pakistan for a second term by securing 201 votes. Stocks faced pressure from economic headwinds on Tuesday and lost over 200 points as market players were worried about the future course of the economy. The KSE-100 index remained under selling pressure on Wednesday and Thursday too and shed 69 points and 53 points respectively, because of doubts about potential negotiations with the IMF for a new loan programme of $6-8 billion. The stocks endured highly volatile trading and closed slightly lower owing to fears about economic recovery and the cautious stance ahead of the monetary policy announcement.

However, the benchmark index modestly rose by 190 points on Friday where investors cheered the IMF’s willingness to negotiate a new programme to help Pakistan address its economic woes. According to a note by AKD Research, the market started the week on a positive note and gained one percent on the opening day. However, as the week progressed, profit-taking activities ensued, tempering some of the initial gains.