PSX continued today its volatile behavior but with positive tone reflecting ease on yesterday's MPC maintaining rate. KSE100 Index closed at 43,043 +164 points. The KMI 30 index increased by 441 points closing at 69,396 reflecting Funds buying.
Trading activity however reflected un ease with respect to political situation arising from no confidence move. The Ukraine crisis having a strong impact on commodities markets also remained a concern.
Looking at yesterday's and today's trading it appears that selling pressure has eased. In general this indicates market would be calm going forward if no major event affects the outlook.
Today's T Bill auction however dents MPC stand of maintaining the policy rate at 9.75%. Cut off yield increased 90 to 130bps. See tweet of topline. This may put pressure on PSX tomorrow.
Today Finance Minister held a press conference and said that the Trade Deficit has declined on a monthly basis, dropping to $3.1 billion i.e. the trade deficit has been brought down to $500-600 million, which is a big development that was not highlighted. He also sounded up beat on defending recently announced relief package with IMF. News