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Bears rule stock market

KARACHI: The Economic Survey seems to sweep the vagaries of the year 2018-19 under the carpet and instead of mentioning the performance for the outgoing year, it begins tracking the index from Jan 1, 2016 stating that the 100 index which stood at 33,229 points climbed 16 per cent to 38,649 points on March 31.

“Fiscal year 2016-17 witnessed steep rise in the index, peaking at 52,876.46 on May 24, 2017; however, it could not be sustained, and the index recorded an overall oscillating trend during fiscal year 2017-18”, the survey stated and went on to note that the start of new fiscal year 2018-19 “witnessed the market again gaining momentum”, reaching the highest point of 43,557 on July 30, 2018, after which it started moving down reaching period’s lowest closing point of 36,663 on October 16, 2018.

The survey stated that “the behaviour of the market might be linked to new government’s policy actions in the form of regulatory measures and exchange rate depreciation to correct the underlying imbalances in the economy, particularly fiscal and current account deficits alongside overheating of the economy”.

The index saw rising trend after business-friendly policies were introduced in the mini-budget of January, though Indian incursions in Pakistani territories on February 26, and subsequent border tensions led to a decrease of confidence in the market, and index closed in at 38,649 points on March 31, whereas market capitalisation was Rs7,868.6 billion.

The average daily value traded (T+2) in the first nine months of the current fiscal year was Rs7.2bn and the average daily turnover was 170 million shares.

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