Vague economic policy cause of bearish trend in stock market

KARACHI: Experts of Pakistan Stock Exchange and capital market have called upon the government to take quick decision about the direction of economy and sign an agreement with the IMF as early as possible for the improvement of capital market.

They have termed unnecessary delay in economic decisions, uncertainty, not fixing direction of economy, decline in interest rate in the market and fear of loss of billions of rupees as main reasons of dwindling investment in the market.

Arif Habib, Chairman of Arif Habib Group, said that uncertainty is the main cause of bearish trend in the stock market as people are at a loss over what will be the interest rate in the market and where will dollar stop. He said that in his view, signing of agreement with the IMF should not be delayed as economic chaos will increase. He said the government should ink an agreement with the IMF forthwith in order to improve the capital market and announce budget.

Kamran Nasir, Chief Executive of JS Global, termed uncertainty and vague economic policy the main reasons of bearish trend. He said that investors have apprehensions that dollar may touch Rs150 while interest rate may touch 13 percent and mutual funds is another cause in the decline of market.

Zafar Moti, one of big stock brokers of the market, said that currently liquidity and hanging of economy are the big reasons in the fall of market.

A big investor and former president of FPCCI Zakria Usman said panic and doubt are the principal causes of bearish trend in the capital market. He also termed capital gain tax another big reason in this regard.