The Pakistan Stock Exchange has commenced the week deep in the red, with the benchmark KSE-100 Index plunging 1,900 points during intra day trading.
The benchmark had plunged 3.8 per cent to touch the day’s low at 47,620 points during the trading session. It was a one-way street, as the market’s open at 49,527 remained the day’s high till the filing of this report.
The KSE-100 index had lost 431 points to close at 49,527 during the last session.
The index was expected to test support at 49,502 but failed to do so. The next target was supposed to be 48,583, extendable to 47,492, according to a report of the JS Global.
Acute panic among investors over the uncertainty surrounding the outcome of the joint interrogation team’s report regarding the prime minister’s business dealings abroad, triggered a reaction amidst the negativity prevalent in the market, analyst Ahsan Mehnati said while commenting on the situation.
Pakistan’s economy expected to grow by 5.5% next year: World Bank
World Bank has forecast that the country’s economy is expected to grow by 5.2% in fiscal 2017 (July 1, 2016 – June 30, 2017) and to 5.5% in the next fiscal year, reflecting an increase in private investment, increased energy supply, and improved security.
Growth in the South Asia region is forecast to pick up to 6.8 percent in 2017 and accelerate to 7.1 percent in 2018, as part of a surge in domestic demand and exports.
The report said that regional growth is projected to remain strong. Growth is also expected to firm in 2018-19, reaching an average of 7.2%. These figures were mentioned as part of the World Bank’s report on ‘June 2017 Global Economic Prospects.’
The World Bank reports that economic growth worldwide is expected to strengthen to 2.7% in 2017 due to rise in manufacturing and trade, rising market confidence, and stabilizing commodity prices. These will also allow growth to resume in commodity-exporting emerging markets and developing economies.
According to the World Bank’s June 2017 Global Economic Prospects, in advanced economies, the growth is expected to accelerate to 1.9% in 2017, which will also benefit the trading partners of these countries. Global financing conditions remain favorable and commodity prices have stabilized. Against this improving international backdrop, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016.