Pakistan Stock Exchange (PSX) showed a downward trend in trading as the points dropped over 750 in intra-day trading. The situation is believed to be caused by the delays in grant of funds in the head of market support promised by the government.
It was decided earlier in a high-level meeting between the capital market stakeholders and government representatives including Securities and Exchange Commission of Pakistan (SECP) chairman and Finance Adviser Abdul Hafeez Sheikh. A proposed figure of Rs.20 billion was likely to be granted as market support fund via buying of shares through state-owned companies. The aim of the fund was to stabilize the market conditions. After the successful meeting, the Finance Adviser also assured full support and cooperation by the government to the delegates.
In the given conditions, investors are disappointed and the market may drop up to 1000 more points if the fund is not provided. The market is desperately waiting for the fund and it showed the anticipation as well when recovery of 3.57% (with 34,637.14 points) was witnessed in later days of May.
National Investment Trust (NIT) would be managing the granted fund to buy stocks of state-owned companies listed at the PSX. But unfortunately, no official letter has been moved from the finance ministry in the said regard as yet.
Apart from the above, the latest prerequisite to submit a copy of the Computerized National Identity Card of unregistered buyers to document the trade has also been condemned by the business community. Few of them also protested against the rule on the weekend. Increased duty on cement in the latest budget has also declined the trading of this sector and has ultimately affected the accumulated downward trend of the stock market.
