Political noise fails to stop bullish trend, index gain 2.1% wow
It was an interesting week when the economic forces and political forces stood face to face. The week started with the arrival of IMF and World Bank mission in Pakistan to assess State of Pakistan's economy. The Azadi March on Islamabad of Maulana Fazal-ur-Rehman kicks off on Sunday from Karachi, calling for resignation of Prime Minister Imran Khan.
The end result of the two events -economic and political nature culminated at the end of the week Friday as follows:
President World Bank David R. Malpass after meeting Imran Khan on Thursday stated that there is substantial progress in Pakistan's economic indicators despite global and internal fiscal challenges.
Maulana Fazal-ur-Rehman on Friday supported by PMl-N President Shahbaz Sharif and PPP Chairman Bilawal Bhutto Zardari gave a two-day notice to PM Imran Khan to step down.
In the light of above two developments, the KSE-100 Index gained 720 points to cross 34,000 level to 34,377.61 on Friday. The Index was bullish for three days. The volume too increased to average 166m while market capitalization increased by 58 billion to stand at Rs.6,698 trillion.
The week on Monday started on nervous note with Azadi March of JUI-F started on Sunday. The cement sector performed well on the news of deferment of axle load policy for a year by the government. The Index gained 204.13 points to close at 33,861.59.
On Tuesday the Index was dragged by banking and fertilizer sectors. The Index moved in a narrow range and finally closed at 33,797.51 shedding 64.08 points but volume increased to 225m.
The risk-averse investors did not take fresh position on Wednesday due the Azadi March and the continuation of traders strike on second day. The Index shed 36.10 to close at 33,761.41 points.
The PIB auction on Wednesday saw heavy bidding. Yields declined especially in 10-year instrument that signal the view of rate cut in the upcoming monetary policy. Also the trader strike agreement was also a positive news on Thursday. The KSE-100 Index gained 442.27 points to close at 34,203.68.
The market remained positive on Friday as PM again clarifies to agitating leader in Azadi March, 'No Amnesty' while paying tribute to the heroes of Gilgit-Baltistan Independence struggle against the Dogra Raj. The KSE-100 Index gained 173.93 points to close at 34,377.61.
On average shares of 348 companies were traded. Of these 179 were...