Bulls regained control at the Pakistan Stock Exchange (PSX) on Thursday, with shares rising by over 800 points in intraday trading, driven by improving macroeconomic stability.
After a brief setback on Tuesday, the PSX made a comeback the following day, recovering only 131 points as investors engaged in value-hunting.
By around 11 a.m., the benchmark KSE-100 index had increased by 548.58 points, or 0.59%, reaching 93,904.00, up from the previous close of 93,355.42. By 1:44 p.m., the index surged by 806.19 points, standing at 94,161.61 points.
Yousuf M. Farooq, Director of Research at Chase Securities, explained, “As returns from fixed-income mutual funds decline, more investors are shifting their funds into equities.”
“While macro indicators appear stable, some tax adjustments may be needed to meet targets,” he added, noting that the overall situation was improving. He also pointed out that circular debt accumulation had stopped, and sales of bikes, cars, and fast-moving consumer goods (FMCGs) were rising. The property market is also showing signs of activity, with a sense of urgency among buyers fearing they might miss out.
“However, large rallies can lead to brief, sharp corrections,” he cautioned. “Investors should be mindful of what they are buying and understand their reasons for doing so. Stocks are long-term investments and should not be purchased with money needed in the short term.”
Awais Ashraf, Director of Research at AKD Securities, added, “The attractive valuation of the KSE-100 index is drawing investors back into equities, fueled by falling fixed-income yields, lower commodity prices, and strengthening macroeconomic stability.”
“With a controlled current account and an improved fiscal outlook, as anticipated in the board’s review, we are in a stronger position to negotiate more flexible terms with the IMF,” he concluded.
