PSX gains more than 300 points in morning trade. In an impressive display of market strength, the Pakistan Stock Exchange (PSX) saw its key KSE-100 index initiate the day’s trading session on a remarkably positive note.
Starting with a substantial surge of over 300 points, the index continued its upward trajectory, marking a gain of 368.62 points or 0.71 percent by 11:35 am. This surge notably breached the significant psychological threshold of 52,000 points, a milestone not achieved in six years.
The market’s buoyancy was reportedly driven by the previous day’s increased share prices following the State Bank of Pakistan’s (SBP) announcement of an unchanged monetary policy.
The decision to maintain the policy rate at 22 percent was aimed at combatting inflation and was largely anticipated by analysts. This stability contributed significantly to fostering confidence in the market.
Raza Jafri, the esteemed head of Intermarket Securities, shed light on multiple factors behind this notable rally. These included a concentrated focus on the economy, prospects for potential future monetary easing, and an optimistic outlook regarding a successful negotiation of the IMF review.
“The KSE-100 had a very strong October, with a notable 15% increase in USD, and appears poised to further extend its rally,” Jafri remarked.
Despite this positive momentum, Jafri cautioned that valuations are still approximately 50% lower than the long-term mean, signifying the potential for further market growth.
Observations in the market revealed significant trading activities within specific stocks, notably Worldcall Telecom Limited, Cnergyico PK Limited, Pakistan Refinery Limited, Pak Elektron Limited, and Oil & Gas Development Company Limited.
As PSX gains more than 300 points in morning trade, moreover, the market saw particular companies stand out as leading gainers, including Premier Insurance Limited, Ghazi Fabrics International Limited, Dandot Cement Company Limited, and Unicap Modaraba.
The upsurge in the KSE-100 index appears to be a confluence of factors, with macroeconomic considerations, the impact of the maintained monetary policy, and the prevailing investor sentiment playing key roles.
Notably, despite the current rally, market valuations remain notably lower, suggesting substantial potential for growth and enhancement in the foreseeable future.
Investors and market observers are eagerly watching these developments, anticipating continued momentum and potential opportunities in the Pakistan Stock Exchange.
