Bulls continued to maintain their grip on the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index was up over 700 points during the trading session on Thursday.
At 3pm, the benchmark index was hovering at 58,909.25 level, an increase of 710.49 points or 1.22%.
Earlier during the day, the index reached an intra-day high of 58,871.07, up over 670 points.
Across-the-board buying was witnessed, with index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, fertilizer, oil and gas exploration companies, OMCs and pharmaceuticals trading in the positive zone.
On Wednesday, the benchmark index crossed the 58,000 level for the first time in history to settle at 58,198.76, up by 827.17 points or 1.44%.
The ongoing bullish trend comes amid the country’s improved economic indicators and the interim government’s successful negotiations with the International Monetary Fund (IMF) for the first review, which will unlock $700 million in funding.
“The market is expecting a decline in the interest rate in the upcoming Monetary Policy Committee (MPC) meeting,” Sana Tawfik, an analyst at Arif Habib Limited (AHL), told Business Recorder. “The decline in interest rate would shift liquidity from fixed income towards equities,” she said.
“Moreover, overall economic indicators are also improving, the current account deficit has declined while the Large Scale Manufacturing (LSM) Index has also shown meagre growth,” she said.
The analyst said that the valuations remain attractive.
“The release of IMF tranche, which is expected in the first week of December, would bolster the bourse further,” said Tawfik.
This is an intra-day update
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