The Pakistan Stock Exchange (PSX) saw continued bullish momentum on Thursday, with shares surging by over 1,000 points during intraday trading.
The benchmark KSE-100 index rose by 1,095.36 points, or 1.36%, reaching 81,556.69 from the previous close of 80,461.33 at 10:35 am.
Mohammed Sohail, CEO of Topline Securities, attributed this positive trend to slower-than-anticipated selling pressure due to FTSE rebalancing, which encouraged local investors to buy shares. He also noted that declining bond yields were driving funds towards equities.
Sana Tawfik, deputy head of research at Arif Habib Limited, cited multiple factors behind the index’s rise, including the US Federal Reserve’s recent rate cut. The Fed reduced interest rates by 0.5 percentage points on Wednesday, a larger-than-usual cut aimed at easing monetary policy amid concerns about the job market.
On the macroeconomic front, Tawfik pointed out several positive developments, including a surplus in the current account after four months. She also mentioned that investor optimism was buoyed by expectations of an IMF approval in the upcoming meeting.
The index had previously gained over 900 points, driven by positive economic indicators and anticipation of the IMF board meeting scheduled for September 25 to discuss Pakistan’s $7 billion loan facility.
Additionally, on September 12, the State Bank of Pakistan (SBP) announced a 200 basis points cut in its key policy rate, lowering it from 19.5% to 17.5%, in response to calls for a significant rate reduction.
