Bulls continued to dominate the trading floor on Thursday on the Pakistan Stock Exchange (PSX), as stocks rose over 100 points amid mixed economic indicators.
The benchmark KSE-100 index rose 234.14 points, or 0.2 percent, to 117,242.22 points from the previous close of 117,008.08 points at 3:19 p.m.
Finally, the index closed at 117,119.65, an increase of 111.57 or 0.1% from the last close.
Yousuf M. Farooq, director of research at Chase Securities, said: “The market is nervous today due to higher-than-expected trade deficit numbers.
“Some participants suggest that the decline in interest rates could slow in the coming months, as the central bank could prioritize addressing concerns about external accounts,” he highlighted.
He noted that a “significant current account surplus could pave the way for lower rates over the next year.”
However, he warned that if high import volumes persist, the State Bank of Pakistan (SBP) “could face limited scope” for a further interest rate cut.
“While inflation is trending downward, sustained high levels of imports could put pressure on the external account,” he added.
Yesterday, data from the Pakistan Bureau of Statistics (PBS) showed that CPI inflation for December 2024 had reached 4.1 percent, the lowest reading in almost seven years.
Meanwhile, Awais Ashraf, head of research at AKD Securities, said: “The KSE-100 index is bearing the brunt of rising political tensions, particularly as some people convicted of attacks on ideological sites in the country have been pardoned.”
However, he noted that stocks in the fertilizer, tractor and banking sectors “rose during the day, mitigating the negative sentiment.
“Gains in the Fertilizer and Tractor sectors reflect higher sales and the merger of ENGRO with DAWH [Dawood Hercules Corporation Limited]while the banking sector benefited from the anticipation of higher deposit growth following the removal of ADR. [Advance to deposit ratio] tax,” he added.
