Shares at the Pakistan Stock Exchange (PSX) experienced a boost on Wednesday, with the KSE-100 index witnessing a significant rise. This surge saw the index climb by 323.03 points or 0.69%, closing at 47,079.83 points. The rupee has been strengthening against the dollar, marking its 20th consecutive improvement session. By day’s end, the dollar’s value stood at Rs284.68 in the interbank market.
Ali Malik of First National Equities attributed this bullish trend to the focused efforts of the Special Investment Facilitation Council (SIFC) in addressing economic challenges. He highlighted the benefits of the 10% duty on Afghanistan transit trade in discouraging smuggling, thus boosting the local industry. Malik also noted the satisfactory state of tax collection, pointing out that rising investor confidence would likely boost share prices further.
Factors Influencing Stock Rally
Siddique Dalal of Dalal Securities pointed out multiple factors for the index’s upward trend, including the crackdown against smuggling, the rupee’s appreciation, stricter immigration laws in discussion, and the SIFC’s investment influx from Saudi Arabia. However, he also mentioned areas of concern, like the World Bank’s projection of declining GDP growth and a lack of volume in certain sectors.
Salman Naqvi of Aba Ali Habib Securities attributed the primary stock activity to banks, particularly those releasing positive quarterly results. He also mentioned the potential gas price hike and the possibility of the dividends scheme’s approval by the IMF as contributing factors. Despite these positive indicators, Naqvi cautioned about the stock rally, noting the persistently low trading volume.
