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|Subject: KSE-100 Index takes mammoth leap of 348pts to 31,800.26 amidst foreign selling, PTI-govt accord Mon 23 Mar 2015, 10:46 am|| |
KARACHI: The Pakistan Tehreek-e-Insaf’s decision of returning to assemblies over the government’s nod of creating Judicial Commission to probe rigging in 2013 general elections has helped the country’s stocks gain massive points.
The Karachi STOCK EXCHANGE benchmark KSE-100 Index advanced by 349 points to reach 31,800.26 versus 31,451.62 of the last session amidst the outflow of foreign portfolio investment and expectation that the State Bank of Pakistan to slash key rate for next couple of months at least by 50-100 basis points.
The foreign selling was a major drag on the benchmark index. The bull-run followed by the SBP report that the current account for February 2015 showed a surplus of $877 million, and that remittances have been increasing with an average of over 14 percent.
The KSE-100 Index even at early trade had jumped by 348.15 points or 1.11 percent to reach 31799.77 as compared to 31,524.98 points of last session. The State Bank of Pakistan reported that the current account surplus helped the deficit reduce its weight while the deficit fell to $1.614 billion in July-February eight-month period of 2014-15.
However, the current account deficit was $2.453bn in the same period of last fiscal year while the total deficit was $3.129bn in 2013-14. It shows that January 2015 posted a current account deficit of $74m.
Likewise, remittances have been increasing with an average of over 14 percent in the current fiscal bringing a total $11.75bn home in July-February eight-month period of 2014-15.
Earlier, the KSE investors remained cautious as benchmark KSE-100 index had decreased by 73.36 points to reach 31,451.62 points versus 31,524.98 of the previous session, anticipating the scheduled announcement of the State Bank of Pakistan’s Monetary Policy Statement on 21st.