KARACHI: The lack of political strength by the opposition parties in yesterday’s procession in Lahore enhanced investors’ confidence, and as a result Karachi 100-share Index crossed the psychological threshold of 43,000 points at Pakistan Stock Market (PSX) on Monday.
The benchmark KSE-100 index gained 795.82 points and closed at 43,266.22 points on Monday. According to PSX data, 337. 47 million shares changed hands. PRL, Hascol, ANL, PIBTL, MLCF and TRG were volume leaders today.
The research head at AKD Securities Ali Poonawala said, “the main reason behind this surge seems to be lack of political strength shown by the opposition parties in yesterday’s Lahore procession.” However, macro stability, strong remittances data and government’s ability to refund major debt outflows are also behind the increase, he further claimed.
Analysts at JS Securities claimed that after the opposition’s procession in Lahore, there would be no pressure on the government, with the rate of inflation also in control. Meanwhile, the data of remittances, exports and other sectors of the economy are also favourable.
The federal government is also fighting the coronavirus outbreak. if the vaccine process in USA succeeds in a few months, investors will be far more comfortable, analysts believe.