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Jittery trend in Stock Market: PSX expected to witness uncertainties this week


Syed Umarullah HussainiWeb Editor

03rd May, 2021. 11:31 am
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PSX

The Pakistan Stock Exchange (PSX) is unlikely to escape the tough time this week and the stocks are at a major risk of underperforming on the back of rising cases of the novel coronavirus.

According to the media reports, the tougher lockdowns, political instability, and extended EID holidays are contributors to putting the stock market at risk during these times.

Moreover, an increase in the Consumer Price Index-based inflation, which surged by 11.1 percent on a year-on-year (YoY) basis in April 2021 as compared to an increase of 9.1 percent in the previous month is also putting pressure on stocks.

On the other hand, the Federal Board of Revenue (FBR) collected net revenue of Rs3,780 billion during the first 10 months of the current fiscal year, exceeding the target of Rs3,637 billion by Rs143 billion.

This represents a growth of about 14 percent over the collection of Rs3,320 billion during the same period last year.

During the pandemic, the stock markets of developed countries have reported a jittery trend. Its spread has left national economies and businesses counting the costs, as governments struggle with new lockdown measures to tackle the spread of the virus. Despite the development of new vaccines, many are still wondering what recovery could look like.

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