Stocks recover 1,195 points amid support fund speculation
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The benchmark KSE-100 index recovered 1,195.04 points or 3.57 per cent of its volume at the close of trading on Wednesday.
Trading opened at 33,618.29 points, with the market remaining mostly on an upward trajectory throughout the day.
The rise was linked to reports that a market support fund is being considered for stabilisation of the Pakistan Stock Exchange by the government. Additionally, state-owned institutions have been purchasing shares in the market, DawnNewsTV reported.
As investor confidence plummeted, Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh met stockbrokers in Karachi on May 17 in and listened to their complaints for an hour and a half.
The brokers had asked the finance adviser to set up a market support fund reminiscent to that of 2008 to help rein in the continuous decline being seen on the trading floor.
Although brokers told media contacts that Shaikh had agreed to the idea of creating $20 billion fund, a PSX press release stated "it was also recommended that keeping in view the attractive valuations at the PSX a market support fund may be considered".
The value of the rupee rose against the dollar today, gaining 35 paisas to touch Rs151.9 in the interbank market and 50 paisas to reach Rs153 in the open market, DawnNewsTV reported.
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Comments (33) Closed
May 22, 2019 01:43pm
Correction Not $ 20 Billion but infact Rs 20 Billion fund
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May 22, 2019 01:49pm
Mere speculation moves stocks up and down, how unfortunate that we are so far away from tangible assets... Alas
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May 22, 2019 01:55pm
Its 20 billion rupees fund. Not 20 billion dollars fund. Typo
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May 22, 2019 02:08pm
Where will govt 20 billion dollar for this fund, when it can’t even pay for basics. This is a deliberate collusion by govt and brokers to manipulate the market.
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May 22, 2019 02:09pm
"Rises"
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May 22, 2019 02:09pm
Temporary relief, wait for tomorrow.
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May 22, 2019 02:37pm
Its good time for investment in PSX.
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May 22, 2019 02:49pm
This artificial cushioning of PSX will prove disastrous and expensive. Long run will get just worse.
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May 22, 2019 03:14pm
Greatest news of the month !
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May 22, 2019 03:16pm
it's an opportunity, pull out your money from this Market.
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May 22, 2019 03:19pm
At last
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May 22, 2019 04:14pm
Storm in a teacup. It's very small, why so worried. Total market capitalisation is less than 100 billion.
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May 22, 2019 04:16pm
2.4% fall is made main Headline and rise of 3.5% is in the corner. Disgusting, we dont deserve to be a nation. We are for sale.
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May 22, 2019 04:28pm
One question- From where will this 20 bn $ arranged.
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May 22, 2019 04:49pm
It will go up and ruppee will be stablise soo. Culprits has benn caught
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May 22, 2019 05:19pm
you cannot predict Stock markets, lot of punters with deep pockets also play a role.
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May 22, 2019 05:21pm
At least something is going up.
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May 22, 2019 05:31pm
The doom and gloom is over. What do onions cost today
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May 22, 2019 05:36pm
If we support the currency , stock market , state run institutions like PiA with tax payers money who will support the tax payer ? Does the government not understand free market economny .
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May 22, 2019 05:46pm
Good to see other then prices of essential items and dollar rates going up.
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May 22, 2019 05:59pm
After recent adjustments to address external account and fiscal imbalances, $ and policy rates will remain stable in near future. Time to sell $ and buy stocks. PE ratio at PSX is 6 and dividend yield in some companies is more than 13%.
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May 22, 2019 06:20pm
@Zaheer, Rose 4 ur rises
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May 22, 2019 06:20pm
People trying to cover loss. Wait for few
Dayt
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May 22, 2019 06:29pm
Normal investors should stay away from investing anything in stock market in the current scenario. State institutes are forced to buy stocks. It will be another big scandal in the coming days, when state institutes will loose billions. Government is openly trying to manipulate the market with the help of state institutes. But this model is not sustainable as it is a manipulation and bad practice.
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May 22, 2019 06:34pm
This news clearly shows the vulnerability of stock market, which is controlled by vested interest & steered around on speculations to its worse or better state. As a matter of fact these engineered upheavals are playing havocs to govt. effort to bring improvement to the failing economy. Soon this 3.5% positive change will improve PKR exchange rate standing against US$. One can really see where the problem lies, this group of stock exchange manipulator have their compatriots in money changing community, who following suite have artificially created dollar shortages, to force govt. to accommodate demand of these SE brokers of infusing $20 billions to their kitty.
Notwithstanding, the fact that the govt. inherited a sick economy, but it has also been bestowed w/a non cooperative bureaucracy, crook brokers & money changers, who have been nourished as self interest groups, fully equipped to manipulate the financial market at will, at the cost of struggling masses. This needs to be stopped
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May 22, 2019 06:55pm
@narendranath paul, Tomorrow will be better. We are optimist. You keep your pessimism with you.
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May 22, 2019 06:58pm
When the looted money will be back in the treasury? These running cases have irked people and this is why the economy is on down side.
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May 22, 2019 07:55pm
@narendranath paul, when was the last time you got relief in india ?
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May 22, 2019 08:24pm
Goverment can not and will not pop up the stock market with public money. Goverment is answerable to the tax payers.
R.S. Menon, Bangalore
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May 22, 2019 08:55pm
It's an over-sold market right now. Shares are trading below their EPS-Projected values. A slightest possible +ive news piece will lift them & the index as well.
@support fund, 20b pkr is like 'keep the change'.
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May 22, 2019 10:55pm
Those who bought on dips are happy now. Remember I also advise to sell on profits.
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May 23, 2019 12:22am
From where $20 billion funds will come? Even if it is Rs 30 billion, this will be taxpayer money which will be put on risky investments and if market drops more, taxpayer will be loser and no support fund will be able to go against fundamentals.
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May 23, 2019 03:02am
Why better news toward economic recovery ,is bitter news to some , by reading the comments. Remember you are as rich as your country. Why is it Pakistani wealthy do not wants to declare their assests,put their money in pak banks ,and build up Pakistan . They still be rich,and will get respect ,and recognization, will be welcome as Indian rich and famous are world ,over! Think about it!,
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