This article was originally published on ETFTrends.com.
The Pakistan country-specific ETF stood out Wednesday, rallying on reports that government-backed financial institutions will prop up liquidity in the South Asian market.
Last week, a delegation of businessmen and brokers held a meeting with Dr Abdul Hafeez Sheikh, the Adviser to Prime Minister on Finance, and discussed the overall macro-economic situation and its impact on capital markets in the country, Geotv reports.
When going over the current market conditions, the delegation proposed various measures to strengthen capital markets, including a draft of Listed Companies (Buy Back of Shares) Regulations, 2019, be approved on priority basis and the limit of 10% on treasury shares should be enhanced.
Other proposals included the present issue of ready futures transaction at PSX, along with maintaining the attractive valuations at the PSX.
Sheikh was amenable to the proposals and assured the full support and cooperation of the government to implement the changes.
“After a long selling spree the market is seeing some recovery. On the economic front, a lot of things have cleared up in the past few days including the International Monetary Fund (IMF) programme, monetary policy and now media reporting positive response expected of the FATF meeting. Also, blue chips are trading at attractive valuations for investors to grab. Both of which have contributed towards the positive movement of the KSE 100 index,” Capital Stake Director of Research Maha Jafer Butt told Profit.
Investor confidence has rebounded on the emerging market as many look to an equity bailout and potential changes to its financial markets.
“The index jumped in anticipation of a bailout fund, along with chances of Pakistan being removed from the FATF greylist in June,” Pak Kuwait Investment Adnan Sheikh AVP Research told Profit. “High net worth individuals have been buying ahead of institutions. Over the last two days alone individual buying stood at $6.5 million while insurance companies bought $2.4 million worth.”
For more information on Pakistan, visit our Pakistan category.
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