Bulls remain in control as the PSX surges by 929 points on first trading day of 2019
- By Web Desk -
- Jan 01, 2019
KARACHI: Pakistan Stock Exchange (PSX) on Tuesday showed an upward trend as the 100-index recorded a gain of 929 points on the first day of trading in 2019, ARY News reported.
The 100-index closed at 37,995 points as the first trading day of new year proved to be a good omen for the stock market that mostly remained battered in 2018.
Stockbrokers say that the investors are showing confidence in the market because of incumbent government’s steps to put country’s ‘ill’ economy back on the track.
Related: Pakistan Stock Exchange sheds almost 800 points in intraday trading
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.
Economist Samiullah Tariq while talking to ARY News said that current account deficit has started to settle down that will be helpful in stabilizing the market.
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.
Earlier today, Financial Times said in its report that China is going to pledge $2billion to Pakistan to help its financial condition.
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.