Observer Report Karachi
Stocks are likely to remain range-bound during this week due to political instability and passive foreign inflows.
The ongoing third wave of Covid-19 may add some risk to investors’ confidence at the Pakistan Stock Exchange (PSX) as the country has recorded over 600 Covid-19 related deaths and around 33,000 coronavirus cases last week.
However, keeping in view the smart lockdowns in place in hotspot areas and aggressive vaccination drive by the government, a complete lockdown is unlikely and this will benefit the market.
On a positive side, strengthening rupee, stable external position, result season, and world stocks marking a record high in the entire history of global financial trading are strong indicators that the index may move to the north.
According to Arif Habib Limited, positive sentiments are likely to prevail in the stock market during the next week as the result season is commencing and investors hope for healthy earnings.
“With the result season commencing from next week, we believe cyclical sectors / scrips will be under the limelight on the back of healthy earnings expectations.”
Political instability in the face of defeat of the ruling party’s candidate in NA-75 Daska, Sialkot, on Saturday as well as cases against Pakistan Tehreek-e-Insaf (PTI) leader Jahangir Tareen may send ripples through the stock market.
