PSX up by 1,015 points after UAE confirms aid to Pakistan

KARACHI: Pakistan Stock Exchange (PSX) showed bullish trend on Monday as the 100-index recorded a gain of 1,015 points on the first day of the trading week, ARY News reported.

The traders showed their confidence after the United Arab Emirates (UAE) finalized, a financial package of $6.2 billion for Pakistan.

The 100-index was closed at 38,611 points.

Investors hope that the market would recover with expected improvement in the macroeconomic indicators as the biggest challenge to the economy – the current account deficit – has started narrowing down.

According to the dealers, more foreign inflows in 2019 are expected as the rupee’s value adjustment against the US dollar – the primary concern of foreign investors – has been addressed now.

Banks and oil and gas exploration firms, which carry almost 40% weight in the benchmark KSE-100 index, would help the index perform better in the year 2019, analysts say.

PSX in 2018

Pakistan Stock Exchange, widely regarded as a barometer of the country’s economy, in 2018 shattered the investor confidence following wide-ranging upheavals in the political landscape and global economic condition.

Importantly, one federal budget did not prove to be enough for the country as a mini-budget followed soon after the PTI assumed the office in August this year.

The year 2018 started with PSX 100 index at 40,471 points but lost over 2,000 points by the end of the year. Prices of different companies’ stocks declined by more than Rs700 billion.