The Pakistan Stock Exchange (PSX) has reached a new milestone, crossing the 72,000 mark during early morning trading on Wednesday. The benchmark KSE-100 index surged by 976.49 points, or 1.37%, to reach 72,335.89 points, a significant increase from its previous close of 71,359.41 points.
According to Raza Jafferi, CEO of EFG Hermes Pakistan, this rally is a result of improving economic indicators, especially in foreign exchange reserves and inflation trajectory. These factors are giving rise to expectations of monetary easing, which has attracted interest in highly leveraged sectors such as cement and textile.
Muhammad Sohail, CEO of Topline Securities, highlighted that the KSE-100 index has set another record. He expressed that consumer inflation is anticipated to decline after a record current account surplus. This has led investors to believe that the interest rate is likely to decrease in the coming months, further boosting market sentiment.
However, it is important to note that the previous day’s trading session ended on a slightly lower note due to profit-taking. The KSE 100-share index fell by 74.06 points, or 0.10%, to close at 71,359.41 points.
Analysts attributed the decline to factors such as higher trades on weak global crude oil prices, reports of refinery shutdowns, and expectations over the State Bank of Pakistan’s upcoming policy announcement. Additionally, the withdrawal of Shanghai Electric Power from the KE acquisition offer, uncertainties surrounding Pakistan-US relations, and a weak rupee also contributed to the negative close.
