Expert opinion: Bullish KSE ‘a result of political stability’

ISLAMABAD:

The passage of 21st constitutional amendment, significant cut in POL prices and political stability are factors behind the marvelous entry of bulls into the Karachi Stock Market that ‘breached’ the 33,000 points barrier on Thursday, experts said.

The benchmark 100 Index gaining 281.52 points closed at 33,117.47 with the turnover of 2,73,098,350, while the market capital stood at 7,595,547,727,090, according to daily stock market report.



Those who hailed the tremendous trading activity included former chairman Lahore Stock Exchange (LSE) Asim Zafar, former LSE director and senior member of the bourse Javed Iqbal, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Muhammad Idrees and former Senior Vice President of Lahore Chamber of Commerce and Industry (LCCI), Abdul Basit.

They termed the formation of National Action Plan, with the consensus of all the political parties, an important development to take the stock exchange to a new high.

According to independent analysts, macroeconomic stability, improvement in the investors’ perception about political stability and economic prospects, better liquidity conditions, changes in Pakistan’s outlook by the international credit rating agencies and the weighing of KSE in Frontier Market indices have all contributed to making the KSE-100 index touch the historical trading level.

Published in The Express Tribune, January 9^th, 2015.