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SBP likely to maintain status quo in interest rate
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Pakistan s REER improves to 99 85
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PSX gives 38% return on investment
Market expected to maintain growth momentum in new fiscal year
PHOTO: AFP
KARACHI:
Taking cue from the government’s business-friendly policies, low interest rate and economic turnaround in fiscal year 2021, the Pakistan Stock Exchange (PSX) exhibited a seven-year high performance as it gave a return of 38% on investment in shares in the year ended Wednesday.
PSX’s benchmark KSE 100 Index increased 38% (or up by 12,934 points) during the year and closed at 47,356 points. In US dollar terms, the market offered a return of 46.22% in FY21.
The market is expected to maintain the growth momentum in the new fiscal year 2022 starting on Thursday (today) following a cut of 2.5% in capital gains tax (CGT) on sale of shares to 12.5% with effect from July 1 compared to 15% since FY17.
Government raises Rs161b through PIBs
Auctions three to ten-year bonds to commercial banks
KARACHI:
The government on Wednesday raised financing of Rs161 billion through the auction of three to 10-year Pakistan Investment Bonds (PIBs) to commercial banks against the target of Rs125 billion, adding to domestic debt which is already at high levels.
More importantly, banks - whose deposits grew 16% to Rs17.95 trillion in May compared to the same month of last year - offered three times the amount to buy PIBs at Rs376 billion compared to the government’s target to raise Rs125 billion through the auction.
The banks higher participation suggests they have ample liquidity, as shown by growth in deposits, and are desperate to invest it even at a low rate of return.
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