Bitcoin isn’t the only thing that is soaring in the market at the start of 2021. The KSE-100 index has crossed the 45,000 mark for the first time in 32 months according to sources. It is continuing to perform well in the market.
Experts believe that the steep climb of the KSE-100 index was due to the announcement of the government of resolving the power sector’s circular debt issue and extending of amnesty scheme for the construction sector. The KSE-100 index saw an increase of 1,100 points in a single day after this announcement.
The government will be settling a circular debt of Rs450 billion with independent power producers (IPPs) in three installments during the current year. The government also announced an extension in the amnesty scheme for the construction sector till June 2021. The scheme was scheduled to expire on December 31.
According to Saqib Hussain, a senior research analyst at Akseer Research, “The announcement to resolve the circular debt issue and the extension of amnesty scheme were the main reasons for the rally during the day.” The last time the index hit these levels was way back in May 2018. Stock markets also tend to perform better during the first month i.e. January. The reasons combined resulted in the KSE-100 index hitting record levels at the start of 2021. Let’s hope this is a good sign for 2021.
Image Source: Tribune
