Positive triggers continue to drive bullish momentum at PSX – Business

Karachi: a series of positive triggers continued to drive a bullish impulse in the Pakistan Stock Exchange (PSX), which extended a historical maximum in two records of record establishment, thanks to the improved economic perspective in the short outgoing week, establishing for the first time above the 121,000 barrier.

The optimism after the finished agreements of the government for a package of historical loans of RS1,275 billion with approximately 18 commercial banks to address the circular debt sent the reference index to new maximums. The other positive positive development was the approval of a loan of $ 800 million by the Asian Development Bank under the Pakistan Public Finance Program.

In May, inflation, measured by the consumer price index, saw a significant increase, increasing to 3.5pc from a minimum record of 0.3pc in April. This sudden peak could be an important concern for investors, since it can stop the continuous trend of the interest rate cuts of the State Bank of Pakistan.

The current impulse suggests that the KSE-100 index may be ready to test the 125,000 level in the short term. However, a decisive and sustained closure above the 121,000 brand, a key technical resistance, will be essential to confirm the continuation of this upward trend.

AKD Securities LTD said the market continued its bullish impulse during the week, mainly driven by investor confidence before the next budget. In general, the opinion on the street remains that a stable fiscal environment is necessary to continue, without a significant change in existing tax structures for individuals and companies equally.

Reflecting this optimism, the KSE 100 reference index increased by 1,950 points or 1.6pc to close by 121,641 points week after week. However, the market share fell, with the average daily volume quoted at 0.2pc to 660 million shares, below 662 million shares in the previous week.

In the macroeconomic front, the commercial deficit was $ 2.6 billion for May. With respect to sectoral developments, the cement offensive reached 4.65 million tons in May, up to 9 percent year -on -year, driven by greater domestic demand.

It is likely that cement sales grow by 6 percent year -on -year in fiscal year 2016, mainly due to a collection in construction activities backed by the decrease in interest rates and a lower inflationary environment. Meanwhile, WTO Industry Offtake also showed an inclined trend, registering 1.53 million tons, up to 10 percent year -on -year.

The rupee depreciated by 0.05pc against the Back Green to RS282.17.

Other important news developments during the week included Pakistani officials with the United States commercial authorities next week; The IMF and the Pakistan approach a consensus on a cut in the tax rates for the salaried class, with a plan to increase the interest rates of the income of bank deposits by 2PC and the Government with the objective of a growth of 4.2pc in fiscal year 26.

As for the sector, generation and distribution of energy, textile fabric, moderated, lease companies and investment banks and companies were among the best. On the other hand, the Vanaspati and Allied industries, synthetic rayon, transport, cable and products and paper and paper and the board were among the worst performance.

Flow-Wise, the largest net sale was registered by foreigners and mutual funds, with net sales of $ 14.7 million and $ 11.4 million, respectively. On the other hand, companies absorbed most of the sale with a net purchase of $ 8.6 million.

AKD Securities expects budget -related developments to influence the feeling of the market in the short term. The single -digit interest rates potential can contribute to a favorable perspective over time.

The KSE-100 index is expected to continue its upward trend, with the objective of an objective of 165,215 points at the end of December.

Posted in Dawn, June 7, 2025



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