India and Pakistan shares jump with the focus on growth to the ceasefire

The shares in Pakistan and India rose an agreement on a ceasefire between the two core neighborhoods on Saturday, as investor concentration again became an improvement in economic expectations. The most important Pakistan Stock Exchange Index (KSE-30) jumped 9.2%, which is the largest increase since 2008, which has led to an hour of trading. The NSE Nifty 50 index rose 3% in Mumbai, where market participants welcomed the ceasefire after each of the two countries withdrew the rand of the war. “Due to how events are increasing rapidly over the past week, the development during the weekend is a step in the positive direction. The attention of investors may be due to the growth of the Indian economy and its positive opportunities,” says Veveck Dhawan, director of an investment fund at Candriam, based in Brussels. Foreign investment flow to India can resume foreign investors, who pumped money into the market within 16 days without stopping until Friday, their investment flow, powered by the positive economic signals of India, including the prospects for an early trade agreement with the United States, a plenty of liquidity and expectations of interest rates. The investors were in a state of anxiety as the “Neferti” index fell by more than 1% on Friday- its biggest decline in more than a month- while the rupee was one of the worst performances in Asia last week. The mortgage returns were slightly increased with the larger risk ponges, although the purchases of debt instruments by the Indian Reserve Bank helped reduce the decline. The main stock index in Pakistan has dropped by 9% since the attack in Kashmir, which India asked to respond. The UPS of the Indian market for the Indian market, the Indian Rupee rose 0.9% against the dollar in the external market. Indian mortgage and currency markets were closed on Monday due to a public holiday. The National Stock Exchange Scale has dropped to 17.2, the lowest level since April 30. The five options were the most traded in the “Neferti 50” index that indicates upward expectations, as it achieved the call option at 25 thousand rupes, which ended on Thursday, the highest trading volume. However, the risk of rebirth of stress still exists, as India has not yet raised its comments on the Sindh water treaty- a step that can negatively affect the production of agriculture in Pakistan. The doubt about the ceasefire of India and Pakistan Meanwhile, a high -ranking Indian diplomat said that Pakistan had violated the ceasefire a few hours after its announcement, a claim by Pakistan. Strategists at Barclays Bank, including Avanti SAV, wrote in a research note: “The reports that talk about violating the ceasefire a few hours after its announcement may arouse a little doubt about its sustainability.” The British bank made the recommendation to increase the purchase of “Pakistani debt instruments, and the Indian rupee is expected to return to recovery. In Pakistan, clients expect the country’s economic reforms to regain the importance of the markets with tension on the borders with India, which casts its shadow on the decision to reduce the sudden interest rate by the Pakistani central bank and additional financing prospects of the International Monetary Fund. The Monetary Fund supports Pakistan The International Monetary Fund on Friday approved to exchange a billion to Pakistan immediately, in addition to a new $ 1.4 billion plan to improve the ability to adapt to the climate, a step that will improve the fragile financial situation of Pakistan. In the event that the ceasefire continues, the upcoming revision of the “MSCI” indicators that could lead to the weight of Pakistan, in addition to the federal budget statement, will be one of the stimulating factors for continuing the momentum in the market, according to the mediation company “Arif Habib”, based in Karach. “BMA Capital Management”: “With the decline in war tension, the investor concentration is expected to turn again to accelerate economic reforms. As supporters of the economy.”