Two years ago the federal government decided to offer long-term Pakistan Investment Bonds (PIB) on floating rates. It took the decision because banks had started redeeming in bulk fixed-rate PIBs as rising interest rates in the country had made them less attractive.
The offering of PIBs on floating rates turned the tables. Banks and non-bank institutions both started purchasing the bonds in large volumes. Greater sales of these long-term, floating-rate bonds helped the government keep the stock of its short-term domestic debt low and enabled banks to park surplus funds with peace of mind. Interest rates on these bonds were tied to short-term treasury bills rates and banks could decide with greater accuracy whether they should invest in the bonds during a particular time of the year.
KARACHI: Stock market took the investors on a roller-coaster ride on Monday. The hope of a major rally was dashed to dust in the latter hours as the KSE-100 index tumbled to close with heavy losses of 786 points, or 1.72 per cent, at 45,051.
Investors were excited over the expression of confidence in Prime Minister Imran Khan by the National Assembly last Saturday. The retention of Dr Hafeez Sheikh as the head of finance and the major jump in international oil prices over the weekend, signaled that the market might head firmly to the north.
The market opened gap up and rose to intraday high by 595 points in early trade.
Business
March 5, 2021
Stocks caved in on Thursday after the government suffered a political fiasco in Senate elections, while a spike in rates on Pakistan Investment Bonds also wounded the sentiment, dealers said.
Pakistan stock exchange (PSX) KSE-100 shares index shed 1.91 percent or 882.24 points to close at 45,278.54 points.
Prime Minister Imran Khanâs senate candidate Finance Minister Hafeez Shaikh lost a closely-fought battle against the opposition-backed former Prime Minister Yousuf Raza Gilani.
âSubsequent to the loss, PM has announced a vote of confidence on Saturday in order to restore confidence in the government. This would take down the political turmoil,â analysts said.
Stocks topple on PTI s senate poll debacle thenews.com.pk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thenews.com.pk Daily Mail and Mail on Sunday newspapers.