The Pakistan Stock Exchange’s benchmark KSE-100 index increased by over 450 points in morning trade on Monday. This was due to a positive outlook in the economy. The government’s announcement of a reduction in fuel prices also contributed to the optimism in the market. The prices of petrol and high-speed diesel were reduced by Rs8 per litre and Rs11 per litre, respectively, for the next two weeks. The Pakistani rupee has also been performing well in recent weeks, appreciating by Rs1.06 against the dollar.
At 12:20pm, the index reached 46,683.13 points, a significant increase of 450.54 points or 0.97% from the previous close. Analysts have commented on the market’s positive momentum, with Raza Jafri from Intermarket Securities attributing it to the focus on the economy from key stakeholders. Syed Faran Rizvi from JS Global Capital mentioned that reduced costs of petroleum, oil, and lubricants (POL) products and the strengthening of the Pakistani rupee have sustained the market’s positive momentum.
Looking ahead, investor sentiment will depend on the IMF review and actions taken in the energy sector. The main drivers of the bull market are the IMF review meetings for the next tranche release and an optimistic growth outlook. Upbeat data on various sectors such as crop output, power generation, and automobile and cement sales, as well as the recovery of the rupee and government discussions on the privatisation of state-owned enterprises, have also contributed to the bullish activity.
More updates will follow.
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