The Pakistan Stock Exchange stayed indifferent on Thursday as the benchmark KSE-100 index dropped to an intraday low of the 27,000-point threshold before value hunters stepped in, helping the market to close on a positive note. Experts differ over the effects of the monetary stimulus package announced by the federal government.
The benchmark index remained green and range-bound unlike in recent days since March 5 when the coronavirus crisis set in motion the bloodbath. It closed at 27,267 points with an increase of 0.14%.
Vice president for investment banking at Elixir Securities Sharoon Ahmad said the freefall of the global market has reflected on our market as well. “We see no buying and only selling.” He said the cuts in the policy rate have further decelerated foreign interest in buying in our equity and usury and “our exchange rate will see further pressure due to this”.
“The global forecast is noted at 0%. There’s an economic slowdown everywhere.”
Director for research at Intermarket Raza Jafri said the market on Thursday was better than it had been for the past few days. “Our situation was unwinding as the market went down and investors began receiving margin calls [by brokers to deposit further collateral] and this exacerbated the losses,” he said.
Manager for international equity sales for Topline Securities, Nabeel Haroon, said the market has responded positively to the measures taken by the government to outmaneuver Covid-19’s impact. ”The abolishment of the capital value tax and easing the borrowing limit from 90 to 390 days for the asset management companies, played right into their hands.”