Mohsin Siddiqui (Chief Reporter)
Pakistan Stock Exchange (PSX), propelling the benchmark KSE-100 Index to a remarkable gain of over 1% during Thursday’s trading session.
Closing at 58,899.84, the benchmark index surged by 701.08 points or 1.2%, marking a significant upswing in market performance. The positive trajectory was evident earlier at 3 pm when the index reached 58,909.25, reflecting an increase of 710.49 points or 1.22%.
A broad spectrum of buying activity was observed, encompassing key sectors such as automobile assemblers, cement, chemical, commercial banks, fertilizer, oil and gas exploration companies, OMCs, and pharmaceuticals, all contributing to the optimistic market sentiment.
This latest surge builds upon the benchmark index’s historic breakthrough on Wednesday, surpassing the 58,000 level for the first time and settling at 58,198.76, up by 827.17 points or 1.44%.
The sustained bullish trend aligns with positive economic indicators in Pakistan and the interim government’s successful negotiations with the International Monetary Fund (IMF). The forthcoming first review is anticipated to unlock $700 million in funding.
Market analysts, including Sana Tawfik from Arif Habib Limited (AHL), project a potential decline in the interest rate during the upcoming Monetary Policy Committee (MPC) meeting. Tawfik notes, “The decline in the interest rate would shift liquidity from fixed income towards equities.” She highlights improving overall economic indicators, citing a reduction in the current account deficit and meager growth in the Large Scale Manufacturing (LSM) Index. Tawfik also emphasizes the attractiveness of current valuations.
Anticipation grows with the expected release of the IMF tranche in the first week of December, further fortifying the market, according to Tawfik.
Meanwhile, the Pakistani rupee experienced a slight setback, ending its five-session appreciation run against the US dollar by losing 0.05% in the inter-bank market on Thursday. According to the State Bank of Pakistan, the local currency settled at 285.27, reflecting a decrease of Re0.66.
