The market decline stopped yesterday on the news that the Treasury Secretary was due to meet the SEC and the CSE to instruct them to revive the market with new ideas and be practical. The market will remain sluggish until direct action by the H.E. to get their grievances redressed.
Monitory and fiscal policy measures appear to be delivering results as the country’s once ballooning trade deficit is shrinking, largely owing to a slowdown in imports-Remittance end May up 17.7% to $2,475m , Tourism earnings end May up 25% to 397m , FDIs at end May $ 437m,CSE in 1H net $187m , Net flows to T Bills and Bonds 1H $ 441m , Long term flows to Govt. end May $ 633m , Commercial Bank borrowings in 1H $927.5m
Rupee continued to remain stable and the Treasury bill yields eased a bit at yesterday’s auction reversing the upward trend. With the exchange rate and the interest rates stabilizing there is every possibility that the market too would stabilize and start moving ahead from here.
Technical Analytical Outlook
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