January of 2021 has been exceptionally positive for the local markets as the government gets ready to announce the textile policy while the companies declare a radical earning system, Pakistan’s stocks are expected to rise up next week if all goes to plan with the current account to post surplus for the first half according to the dealers.
KSE index has only went one way, up from 44,435 points on 1st January. Through a week on week analysis, Pakistan Stock Exchange’s (PSX) KSE-100 shares index gained 0.6 percent or 276.66 points to close at 45,931 points. “We believe the index to remain above the psychological level of 46,000 mainly on the likely announcement of textile policy along with the detailed trade numbers”, says the head of research at Shajar capital, Muhammad Saeed Khalid.
The minor lag that can be detected in the trading activity nowadays is due to some decisions that are in the making. The inconclusiveness factor in the government-IPP agreement on circular debt payments, the dilly dallying of the ECC to give final verdict on the approval of textile policy has given an uneven beginning to the week.
“We anticipate the market to sustain its positive momentum given the fast pace of global vaccine rollout, stable value of rupee against the greenback and improving macroeconomic indicators”, says Umair Naseer at Equity Sales Desk at BMA Capital Management.
“We believe banks, E&Ps, fertilisers, autos, and cements will lead the index performance this year. Our strategy report released this month further highlights our top stock picks and ongoing year outlook,” Naseer added.
