While the stock market might not be (debatable, I think it isn’t) an accurate indicator of the economy, it is an important metric to look at when talking about the financial world and its performance. Off to a good start, the PSX opened on January 1, 2021 at 44,434.80 points and gained due to the reopening of global economies and a slowdown in COVID infection ratios for the country.
However, with recurring Covid-19 waves, pressure on the external account, rising inflation, and downgrading in the MSCI list, the market witnessed a downward turn. With another round of monetary tightening underway, the PSX witnessed some withdrawals into fixed return assets amidst this higher interest rate environment.
The index, however, closed on 43,901 points generating a 0.3% return. As per Arif Habib Limited’s Pakistan Investment Strategy 2022, this is equivalent to a -9.99% return in USD basis. As per the report, the Research team anticipates the index to close at 55,036 points by December 2022. “Our December 2022 target for the KSE 100 Index is set at 55,036 points, portraying an upside of 25.4% from index closing of 17 Dec 2021.”
This year, tech was a sector gainer up 904 points, followed by commercial banks with a positive 870 points. Systems limited was a winner this year with a positive contribution of 810 points making 90% of the contribution in the Tech sector. Cement, Oil & Gas Marketing Companies, and Refineries didn’t perform that well on the PSX, negatively contributing...
Read Full Story: https://profit.pakistantoday.com.pk/2021/12/27/the-year-that-was-the-highs-and-lows-of-the-stock-market/
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