Benchmark equity Index settled 1.52% higher on Monday after news flow suggest that Finance Minister Shaukat Tareen has chalked out plans to significantly increase the Infrastructure spending (Public Sector Development Programme) in the upcoming budget. Furthermore, it is also expected that some material measures will be introduced for the stock market in the budget to be presented by end of next week.
KSE100 ended at 47,896, up 770 points or 1.63%.
Shares of Pakistan stock exchange closed 7.5% higher while D.G Khan Cement rose by 7.32%. Board leaders also included Kohat Cement (+5.11%), MLCF (+4.29%), PSO(+3.6%), HBL (+1.38%), OGDC (+2.15%).
Market also remained positive over Fitch Ratings projection about Pakistan’s GDP where it expect Economic growth to stabilize at 4% for FY22.
The market is bullish over Budget where it is expected that government will focus on growth to boost the economy. No hike in the direct taxes, which investors feared, focus on Industrial Growth, and announcements related to Exports Incentives are the key market puller of upcoming Budget.
Analyst believe that the Budget will play a key role in pushing the economy back on the recovery path and boost corporate earnings. Hence, the Investors money is flowing into specific stocks that are likely to benefit the most from the growth journey. Cements, Autos and Banks are likely to remain in limelight as portfolio managers finetune there portfolios.’
Adnan Syed, Resident Editor at BusinessTribune commented on the market performance:
He further mentioned that
Stock market has rallied 8.2% during the month of May-2021 as higher Economic growth forecast and better external position led to investors Optimism.
The KSE100 is trading near strong support levels of 47,500 and remain in bullish momentum with Resistance expected at 48,300. RSI of the index stands at 73.
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