Stock Market adds 500 points amid increased Participation

The Mint PK

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Stock Market adds 500 points amid increased Participation

  • KSE-100 trades above 34,000 level amid increased volumes

  • Market optimist about Economic recovery and FATF Meeting

Benchmark Stock Index KSE-100 index closed on a positive note as significant decline in T-Bills yields points toward an imminent decline in Interest Rates.

In the T-Bills auction yesterday, T-Bills cut-off yield for 3months/6Months/12 Months tenor fell by 4bps, 28bps and 38bps to 13.69%, 13.55% and 13.47% respectively.

A surprising change in the Money Market is the fact that foreign investors have bought $342 million of local Bonds in the quarter of July-Sept 2019. Furthermore, the SBP governor has also mentioned that inflation is expected to ease from January-2020 onwards.

The KSE-100 index closed at 34,027 level today after increasing by 504 points. Participation from Investors improved to 261 million shares as compared to 237 million shares in yesterday’s session.

Major increase was contributed by Commercial banks, oil & gas companies, and the cement sector, contributing 218 points to the index.

The Stock Market has found support and is steadily gaining momentum as Positive News flows related to the economy are cheering the Investors. 

The main triggers at the moment are FATF announcement, Corporate Results Season for 3Q2019 and Expected Monetary Easing. Some Participants also expect that Government is going to give some kind of waiver to Traders and Businessman over Mandatory Sales Tax Registration and CNIC requirement. 

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