Monitoring Desk
KARACHI
The stock market made a splendid recovery in the outgoing week with the KSE-100 index regaining 886 points, or 2 per cent, to close at 45,186. The bears that had wreaked havoc the earlier week and pummeled the index by 1,221 points were driven away after the first session in the outgoing week.
The equities rallied as the investors were encouraged by the upgrade by IMF of its local and global growth forecasts to 1.5pc and 6pc for FY21 respectively. Besides, stronger growth forecasts by IMF for FY22 at 4.0pc and lower than expected inflation reading in March (9.05pc compared to 9.5pc market consensus) positively impacted investor sentiments.
News flow during the week was dominated by IMF, mainly the $500m received as the third tranche of the Extended Fund Facility. Moreover, the announcement of receipt of $2.5bn by the SBP in lieu of Eurobond issuance provided markets a reason to cheer towards the end of the week.
On the political side, the government could breathe easy as the divided Opposition was scarcely a threat. On the negative side, the Covid-19 infection cases reported at above 5,000 on most days resulted in smart lockdowns in several cities that displayed higher incidences of disease.
