The Pakistan Stock Exchange (PSX) continued on Thursday its renewed bullish impulse while crossing the barrier of 138,000 points.
The Reference KSE-100 index increased by 1,785.25 points, or 1.31 percent, to stand at 138,165.21 points at 11:57 AM, from the previous closure of 136,379.96 points. The index closed at 138,665.49 points, more at 2,285.53 points or 1.68pc.
Awais Ashraf, research director of AKD Securities, said: “Investor optimism about a possible rate reduction in the next monetary policy, which is expected at the end of this month, has been strengthened after a decrease in yields during the Pibs auction (Pakistan Investment Bonus) yesterday.
“A stable external account and facilitate inflation further supports the case to carry out interest rates to a single digit,” he told Dawn.com.
The PSX had organized a modest recovery yesterday when investors resumed the purchase, encouraged by the formation of a high -level committee to address the business community concerns about recently introduced fiscal measures.
The development has helped the KSE-100 index to gain impulse despite the call of strike of July 19 by the Karachi Chamber of Commerce and Industry to protest against the powers to arrest and prosecute the entrepreneurs introduced in the federal budget.
The trust of investors was also reinforced by the recent informative session of the Minister of Finance Muhammad Aurengzeb to Moody’s about the improved macroeconomic perspective and the financial stability of Pakistan, reinforcing optimism for a possible qualifications update in the next revision of the Credit Qualification Agency.
More to follow
