KARACHI: Stock exchange has made history today (Friday) on week s last day of trading as 100 index crossed above 37,000 points.
The bullish market these days testifies investors’ growing confidence in Pakistan and Pakistan’s industries. The stock exchange trampled all previous records today as 100 index slew the 37,000 mark.
According to the experts, low interest rate and investor-friendly policies in the federal budget 2016-17 that is to be announced today by Federal Finance Minister Ishaq Dar are be held responsible for the growth.
The record hike came around five months after the government merged stock exchanges in major cities to form a single bourse. Analysts had welcomed the development of mergering Lahore, Karachi and Islamabad’s exchanges foreseeing positive results.
State Bank cut the already reduced interest by 0.25 percent in May. The supreme bank had maintained six percent rate in the two monetary policies before the one announced last month.
The bank said economic growth in the fiscal year ending June 2016 was likely to exceed last year’s 4.2 percent but miss the 5.5 percent target.
The State Bank stated that the annual consumer inflation rate increased to 4.17 percent in April from previous month’s 3.94 percent.
Economists are of the point of view that the country needs to expand by six percent a year to absorb new entrants.