Stock Market likely to remain Positive

The Mint PK

Comprehensive source of Business, Lifestyle and Technology news from Pakistan

Markets

Stock Market likely to remain Positive

The benchmark KSE-100 index closed the last week 0.63% lower at 33,657pts, down 213 points. Market activity remained weak following the application of a minimum standard commission, with average daily volume declining 10.9%WoW to 125mn. Tensions on the eastern border and tough call from the FATF demanding swift action gave jitters to the market. However, the Market recovered later in the week.

The benchmark KSE-100 is likely to trade in a positive territory given easing of tension on the political front.

Analysts also expect lower inflation for the month of October. Other positive news from Macro Economic fronts includes shrinking the Current Account Deficit trend to continue. While foreign investment in government Bonds would further uplift investor’s sentiment.

T-bill market has witnessed an inflow of around $87 million last week taking Foreign inflows in this fiscal year (FY2020) to US$451 million.  The move is very positive as it helps in the stabilization of foreign reserves and gives a positive indication on the economic front.

Moreover, deferment in the implementation of axle load for a period of one year would keep construction-related sectors in limelight.

However, from a thematic perspective, analysts are still recommending to look for defensive stocks.

If you are interested in investing in Pakistan’s Stock Market, then have a look at our guide suggesting Best stocks to buy in 2019. Click here

Comment here