Pakistan Stock Exchange breathed a sigh of relief. The battle between bulls & bears had apparently ended after Friday’s election of Senate Chairman, Mr Sanjrani. His chairmanship gives assurance to investors & the government to pass structural reforms needed to improve the economic web. Several good quality stocks had fallen 25-30% from their recent peak levels only to end on a very strong note today.
KSE-100 closed up by 978.51 points to 44,766.59 levels with 239.6mn volumes. Highest activity was recorded in TRG (+7.49%) with 24.8mn shares traded, UNITY (+7.49%) with 23.6mn shares and FCCL (+1.94%) with 21.1mn shares traded.
While the Prime Minister is directing to defer gas price hike till Budget to counter it with targeted subsidies, the necessary bills to be passed – SBP, SOE, Income Tax, NEPRA Acts – are needed to revive IMF plan & pave way for global bond issuance. Market is expecting painful reforms to be enacted sooner.
Emergence of third wave of Covid has led to reintroduced lockdown measures by Federal & Provincial governments. That may temporarily hamper economic activities but the brunt of the severity should be lesser. The positive inertia of today’s bullishness could taper tomorrow as investors rebalance their portfolios.