Bullish bourse

Round-the-corner review talks with IMF have brought more confidence to the market

The bourse for the first time in many years is stretched out for a comfortable trend. The positive trend at Pakistan Stock Exchange (PSX) that had galvanised over the weekend continued on Monday, as the bullish steak closed at 53,860 points, up 737.33 or 1.39 per cent, from the previous close of business. The impetus perhaps for the first time since May 2017 is on a considerate note as market hopes to see an upward trend, and the battered rupee gain some more strength. Apart from this, the decision to announce dates for general elections, the euphoric sentiments pouring in from probable investors and the renewed nod that CPEC had received from Beijing are acting as catalyst factors. The benchmark should prevail over the week, and it is encouraging to note that despite the brush with four terror incidents, the confidence of the traders is on a firm forward-looking note.

The review talks with the IMF that are around the corner have brought more confidence to the market. The bears are roaming around and they foresee a pat on the shoulders from the Fund to the consistency of approach that successive governments have put into the programme. The indication was first evident as the KSE-100 index gained more than 30% this year, after the IMF approved a $3 billion loan programme in July to avert a sovereign debt default. The reform package under a nine-month schedule, to be completed in March 2024, will prove to be a leap forward as Pakistan looks for diversifying its economic policy, and reorient it with a more sustainable approach.

The fact that the dollar’s flight has been checked and the rupee is slowly picking up strength, along with a successful crackdown on hoarders, black-marketers and smugglers, has bred renewed vitality in the fundamentals of macroeconomics. Last but not least, the falling interest rate has also helped out the equity market, and all that is needed now is minute monitoring of the evolving graph with a laissez faire approach. A pinch of political stability is all set to turn the tables for a win-win situation.

Published in The Express Tribune, November 7^th, 2023.

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