KARACHI: The Pakistan Stock Exchange (PSX) achieved a new milestone as it crossed the 72,000 mark during the early morning trading on Wednesday.
During the intraday trading, the benchmark KSE-100 index gained 976.49 points or 1.37% to reach 72,335.89 points, up from the previous close of 71,359.41 points.
EFG Hermes Pakistan CEO, Raza Jafferi, attributed the rally to the improvement in the economic metrics, especially in foreign exchange reserves and inflation trajectory, which are giving rise to monetary easing expectations.
“This can be a major trigger for equities, and is leading to interest in highly leveraged sectors such as cement and textile which are driving the newest leg of the rally,” said Jafferi.
Topline Securities CEO Muhammad Sohail said that the KSE-100 index has set another record. He said that consumer inflation is expected to decrease after record current account surplus.
“Investors believe that the interest rate will decrease in the coming months,” added Sohail.
“Stable macros, expectations of a rate cut and hopes of a new IMF (International Monetary Fund) program are driving the market,” said Samiullah Tariq, the head of research at Pak-Kuwait Investment Company.
Stocks a day earlier ended slightly lower in mixed trade as early gains driven by a rally in the cement sector were erased by profit-taking in the later session, traders said.
The KSE 100-share index fell by 74.06 points or 0.10% to close at 71,359.41 points.
“Stocks closed under pressure amid higher trades on weak global crude oil prices, reports over refineries shutdown and expectations over prudent SBP policy announcement next week ahead of new IMF loan talks next month,” said analyst Ahsan Mehanti at Arif Habib.
“Shanghai Electric Power’s withdrawal on KE acquisition offer, uncertainty over Pakistan-US relations on Pakistan-Iran trade pacts and weak rupee played a catalytic role in the negative close.”
