43,230 200 (0.47%)
Todays' positive performance of PSX reflects that despite the national political situation of the incumbent facing no confidence move, the market is ready to hang on to any positive development no matter how far in the future.
Yesterday Barrick Gold Corporation (TSX:ABX), a Canada based mining company, that produces gold and copper, had announced that 'Barrick and the Governments of Pakistan and Balochistan have reached agreement on a framework that provides for the reconstitution of the Reko Diq project in the country’s Balochistan province. See press release.
OGDC and PPL announced their equity interest in the Reko Diq project as per the agreement signed. (See announcement, OGDC, PPL). This put market participants in a cherry mood. The real reason being that the market is in a oversold position. Investment requirement in the mining project also restricts these companies ability to pay higher cash dividends.
But continues to face concerns of Oil prices that again started rising (Brent above $114).
Rupee keeps weakening against the US dollar, now tops Rs 181. Exports figures for February have been encouraging though. If commodities prices keep rising or remain at this elevated level, the downward trend for the Rupee will continue.
Interest rates in the market are also increasing. KIBOR is now +12%. Despite that MPC made no changes in the policy rate, subsequent auction of TBills and PIB had seen higher cut off.
This is roll over week shortened on account of Pakistan Day holiday.