It was a short week with only three days of trading. The market remained closed due to Ashura holidays on Monday and Tuesday.
In the stock exchange on Wednesday and Friday the foreigners were buyer by $1.32m and $1.08m respectively. There was heavy buying of $7.22m on Thursday by Mutual Funds.
Over all, the KSE-100 index gained 1,014 points and crossed 31,000 mark to close on Friday at 31,481.31. This is the second consecutive gain in September by the index. Previous week it gained 795 points. The average volume too increased to 130 million from mere 93 million last week. The market capitalization has increased to Rs.124bn to close at Rs.6,312 trillion on Friday.
The three scenarios building around stock exchange working seems to have softened: The possibility of nuclear war with India; FATF challenges and Interest rate.
The Defence Ministry rules out any possibility of a nuclear war with India because of prevailing tension due to latter's annexation of Jammu and Kashmir.
Pakistan has presented a report to the Financial Action Task Force (FATF) Asia-Pacific Group in face-to-face two-day meeting in Thailand which would now be taken up by FATF Plenary meeting scheduled for October 2019 in Paris.
Monetary Policy rate to be announced on Monday. Further acceleration is out of cards but possibility of slight decline may take place due to fiscal outages and business community pressure. The inflation expectations of IMF were 13-13.5 percent while SBP spelled out 11-12 percent in last communication.
There was a rally of 487 points on Wednesday due some positive development. Finally Pakistan has submitted in a meeting in Thailand (Bangkok) report on FATF which will be taken up by in October in Paris. Pakistan as a key facilitator in the US-Taliban talks is in touch with Americans in getting support of the Trump administration for the case in FATF. Investor's positive expectation of rate cut in monetary policy.
The KSE-100 index closed at 30,954.83 and the volume increased to 100 m shares from 48 million last Friday. The foreigners were buyer by $1.23m.
On Thursday the bullish trend continued and KSE-100 index gained 591.78 points to close at 31,546.61. The volume jumped to 186m shares. The Mutual Fund were buyer by $7.22m.
After continuous rally for three days, the stocks lost 65.30 points to close at 31,481.31 on Friday...