Sindh confirms billions in injection at PSX

Official says investment will be made through Sindh Pension Fund

KARACHI: Buoyed by the Pakistan Stock Exchange’s impressive return this year, which has seen the benchmark-100 index increase over 27% this year alone, and expecting continued growth, Sindh has decided that it wants a greater piece of the action.

Through its Sindh Pension Fund, the province has decided to inject, according to market reports, over Rs5.7 billion in the stock market through different asset management companies. An official at the Finance Department of the Government of Sindh confirmed that the injection would be made, but declined to reveal the precise amount.

“It is true that we have decided to invest a huge amount of money in the stock market,” the Sindh government official, who requested anonymity, told The Express Tribune. “We have been investing in stocks, but this is the first time we have decided to invest this much.”

The report, which was earlier unconfirmed, was enough reason for the benchmark-100 index to rally up more than 1.5% on Thursday as investors jumped up at the prospect of the huge injection. The current level of Sindh Pension Fund investments in mutual funds exceeds Rs6 billion.

When asked, the official said that provincial pensions are disbursed by the office of the Accountant General Sindh and the Sindh Pension Fund is just a reserve fund meant for emergency situations. He said that other provinces too have such funds that invest in equity markets.

The report, along with the increase in global crude oil prices, gripped investors at the PSX, helping the index close at its record high of 41,545.95.

Published in The Express Tribune, October 21^st, 2016.

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