Karachi
The Pakistan Stock Exchange (PSX) is likely to remain under pressure this week due to the Financial Action Task Force (FATF) session, rollover of future trades and ongoing talks with the International Monetary Fund (IMF) to remove the global lender’s concerns over the finance bill 2021-22.
Although situation at political front, dropping coronavirus cases as well as increasing vaccine rollout, fundamental economic recovery, stable outlook on the external sector, expected corporate profitability, strong liquidity and prevailing attractive valuations are positive factors, yet the main key will be the decision of the FATF to let either Pakistan go off the grey list or maintain the status quo that would take the bourse in either side.
Any positive news from the FATF will prove to be a major catalyst in taking market to new highs; however, if Pakistan’s existing status at grey list is maintained, the benchmark KSE-100 Index is most likely to move downwards and break below the psychological barriers of 48,000-mark and even 47,000 points.
The market analysts said that institutional investors would in particular watch out for the FATF plenary session starting on June 21, where hopes run high of Pakistan being able to skip out of the grey list as the country had fully implemented 26 of the 27 points of the action plan.— TLTP
