KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) on Tuesday continued its momentum by soaring past 111,000 points amid a rosy economic picture.
The stocks gained strength on the 10th consecutive day which is symbolic of improvement in country’s economy.
With the cash injection in the form of International Monetary Fund’s loan disbursement and further talks on climate funding, the proverbial bulls have been galloping for the last more than a month.
Another reason for the current market sentiment is SBP’s upcoming meeting on policy rate cut. The Central Bank’s Monetary Policy Committee is expected to meet on Dec 16.
On Monday, the stocks faced jitters during early trading causing the benchmark KSE-100 Index to lose more than 1,000 points during the opening hours. But they soon bounced back and surpassed 110,000 points after gaining more than 1,000 points.
Read more : PSX surpasses 110000 points after bulls, bears play hide and seek
Monday’s trade eventually closed at 109,970 after gaining 916 points against Friday’s (last trading day of week) figures.
According to market experts, the sudden meltdown in the market was due to the government’s decision to constitute a committee to resolve the pending issue of the Advances to Deposit Ratio (ADR) in the banking sector. But the trend was short-lived.
MAGIC FIGURE OF 100,000
On Nov 30 last, the Pakistan Stock Exchange (PSX) attained the historic high of 100,000 points on the heels of unprecedented streak of surge in the last one month or so.
The KSE-100 index achieved one milestone after another in November 2024 amid recurring reports of economic stability mainly due to the recent loan disbursement by the IMF.
The reassuring agreement with the international lender and Pakistan economic czar Muhammad Aurangzeb’s subsequent announcement ruling out a mini-budget boosted investor confidence in recent times.
Back on Nov 5, the State Bank of Pakistan cut the policy rate by 250 basis points to 15 percent.
SBP’s relevant committee noted that inflation had declined faster than expected and reached close to its medium-term target range in October.