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The stocks at the Pakistan Stock Exchange witnessed a continued bullish momentum Thursday as the market extended its rally on positive economic data and jumped past the 49,000-level to its highest in six years.
During the intraday trade, the PSX’s benchmark KSE 100-share Index gained 560.20 points or 1.15% to jump to 49,324.50 points, the highest since June 9, 2017.
The benchmark index has gained 7,871 points since Pakistan signed a staff-level agreement with the International Monetary Fund for the $3 billion Standby Agreement.
Market analysts have attributed the constant rise in the market to a host of reasons — including the status quo maintained in the policy rate by the State Bank of Pakistan (SBP).
Head of Equities at Intermarket Securities Raza Jafri told Geo.tv that the market has reacted positively to unchanged interest rates as the bullish momentum continued in August.
“New liquidity has come from foreign investors and continued buying by sponsors (share buybacks),” Jafri said.
He also noted that some profit-taking is possible as the results season picks pace, but the overall sentiment for FY24 remains bullish.
Capital market expert Saad Ali said that optimism continues on the back of investor perception of lower macro risks, political disruptions, and encouraging corporate results.
“The status quo decision in this week’s MPC was better than market expectations which reinforced the positive investor sentiment driving the current rally,” Ali added.
More to follow…
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