- It seems inevitable that the 53,000 mark will be exceeded, says the AHL.
- Investors note the government’s strong focus on the economy.
- Analysts say the market believes interest rates will not rise.
The Pakistan Stock Exchange (PSX) on Friday surged over 300 points and crossed the 50,700 mark, the highest since May 2017, driven by positive signals, especially from the macroeconomic side, giving investors a strong foothold in the capital market.
The benchmark KSE-100 index opened higher and remained bullish throughout the day, with analysts citing multiple reasons, including the positive monetary policy outcome expected to be announced on October 30.
The PSX website showed the market closed at 50,731.86 points after rising 366.71, or 0.71%, from the previous close of 50,365.15 points. During the intraday session, the stock also reached 50,952.67 points.
In a note, Arif Habib Limited noted that momentum remains strong and it seems inevitable that the 53,000 level will be breached.
– said Raza Jafri, head of equities at Intermarket Securities Geo.tv he attributed this growth to investors taking note of the government’s overwhelming focus on economic management.
He mentioned that there is a growing belief that interest rates may not be raised. The current interest rate is 22% and was announced on September 14.
Jafri added that a successful International Monetary Fund (IMF) review will be a sign of approval for the government’s economic policies, which could help the KSE-100 index reach a new record high.
Capital markets expert Saad Ali said the market rally was largely due to the stability of the rupee, while noting that the market seemed “less concerned” about a possible election delay.
“It’s a bit too early to be optimistic about Nawaz Sharif’s return. [The market has received] no negative news in the last two months and [investors] We can assume that no further interest rate increases are expected in the near future,” he added.[areintheoffinginthenearfuture”headded[areintheoffinginthenearfuture”headded
Shares of 350 companies were traded during the session. At the end of trading, 188 scrips closed in green, 145 in red and 17 remained unchanged.
Pak Refinery was the volume leader with 42.4 million shares traded, gaining Rs 0.66 and closing at Rs 18.13. This was followed by K-Electric Ltd with 35.7 million shares losing Rs 0.11 to close at Rs 3.26 and WorldCall Telecom with 31.02 million shares remaining unchanged to close at 1.28 rupees.
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