PSX posts 1,300 points gain by mid-day

KARACHI: The Pakistan Stock Exchange (PSX) opened trading on Tuesday at 111,743.53 points. Since then, the market has been showing steady gains, reaching 113,107.20 points around 3 PM.

The benchmark KSE-100 index has been undergoing fluctuations for the past several sessions, with periodic recoveries, only to slump down again. There are contradictory factors in all facets of the economy, which are also showing impact on the stock market.

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On one hand, the market confidence is getting the much needed boost due to improvement in macroeconomic indicators. Inflation continues to stay under control, while the State Bank of Pakistan (SBP) is not hinting any increase in the policy rate either.

On the other hand, the continued political and judicial instability is causing the investors to remain wary of investments in the capital market.

The land reforms being undertaken in different provinces are likely to start yielding results in terms of high availability of equity for the bourse. However, the privatization drive and the related lay-offs are also simmering a feeling of uncertainty among the small investors.

The government is aiming towards improving exports, with programs like Uraan Pakistan getting a lot of policy attention. At the same time, the crackdown on water wastage and smoke emitting industries is creating downward pressures, with instability apprehensions related to fines and penalties.

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All in all, while the foundational support is available to the market these days, the day to day factors are creating some uncertainty, as is evident by the stock market movement as well.

Around 3 PM, the benchmark KSE-100 index looked like this: