The Pakistan Stock Exchange (PSX) saw a surge of over 1,400 points in intraday trade on Thursday, driven by optimism in the fertiliser sector. The KSE-100 index climbed 1.57%, reaching 97,046.19 points, surpassing the 97,000 mark for the first time after a dip the previous day.
Fertiliser stocks, particularly Fauji Fertiliser Company (FFC) and Fauji Fertiliser Bin Qasim Limited (FFBL), led the rally, following the unlocking of their dividends. Analysts noted that while political uncertainty still lingers, institutional investors are increasingly confident in the market, encouraged by declining bond yields and positive macroeconomic indicators, such as improved inflation forecasts for November.
Experts pointed out that funds are shifting from fixed-income instruments to equities as inflation expectations remain low, fueling market optimism. However, concerns over political instability and macroeconomic risks continue to weigh on investors. Despite this, analysts believe stocks are still reasonably priced, offering potential for growth, provided that risks such as government spending and the current account deficit are managed.
