The actions of the Pakistan Stock Exchange (PSX) rose for 1,300 points on Wednesday before the announcement of the budget on June 10.
The KSE-100 index rose 923.71, or 0.77 percent, to stand at 121,374.58 from the last closure of 120,450.87 at 1:31 pm the index closed to 121,798,86, with a gain of 1347.99 points or 1.12PC.
SANA TAWFIK, Chief of Research of Arif Habib Limited, attributed the upward impulse to the news of the approval of a new financial package between Pakistan and the Asian Development Bank (ADB).
The ADB approved a $ 800 million program to strengthen fiscal sustainability and improve public financial management in Pakistan, according to a statement issued by the Philippine headquarters.
The declaration said that subprogram 2 of the “improved resource reform and use reform program” includes a loan based on $ 300 million policies and the “first policy -based guarantee” of ADB of up to $ 500 million, which is expected to mobilize financing of up to $ 1 billion commercial banks.
In addition, Tawfik pointed out that the assessments of shares were quoted to an “attractive level” due to the correction phase witnessed in the stock market earlier this week.
“Finally, there are also some institutional purchases that have increased liquidity,” he added.
Yousuf M. Farooq, Research Director of Chase Securities, said: “The market has reached a historical maximum as participants discard any negative budget -related news flow.”
He explained that expectations were developing that economic stability would persist and interest rates will gradually tense the downward trend, allowing the proportions of price / cattle of the stock market (PE) to rise again.
“We believe that the market is gradually entering the second phase of the execution of the bull, the transition of the accumulation phase to public participation or the impulse phase, marked by the increase in public participation, the increase in the volumes of the stock market, the gradual multiple expansion of PE and the clearest signs of economic recovery,” he said that the confidence of investors, the attention of the media and the new activity of the media and the new activity was expected.
“The measures such as the reduction of taxes that increase corporate gains, together with the fulfillment of IMF guidelines, will further strengthen confidence,” Farooq said, noting that the steps towards mass digitalization would also boost the feeling of the stock market.
