PSX becomes 2nd best Performer internationally

Pakistan’s stocks have recovered all the losses caused by the COVID-19 pandemic, according to Bloomberg’s data Pakistan’s benchmark index, KSE-100 has performed the 2^nd best internationally in the last month.

According to the details, it has gained 47% since reaching the lowest this year on March 25.

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The Arif Habib Ltd’s report said, the stock market showed an energetic performance in the first month of FY21 with the local equity bourse closing at 39,258 points, up by 4,837 points, and translating to a return of 14.05% MoM in July, 2020.

It is to be noted that month of July was the best performing month in 17 years.

The report further said that Sentiments at the KSE-100 index were rejoiced by several rate cuts by the SBP (625 bps in total) which have once again brought equities to the forefront as the preferred asset class.

In the end of coronavirus induced lockdown as well as the restoration of pre-corona market hours, aided volumes and attracted investment in the market.

It is to be noted that positive contributions to the index in July were led by Commercial Banks, Cement E&P, and Fertilizers.

A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities said that Low-interest rates, FATF bill passage, low infection rate & improving tax collection is keeping the bull rejoiced.

The sources said that the sectors which caught the interest of the investors were Cement, Refineries, Steel, banking sector and Autos.