Shares at the Pakistan Stock Exchange (PSX) continued their climb on Tuesday, with the KSE-100 index surging past the 111,000 mark, gaining over 1,400 points in intraday trade.
The KSE-100 index rose by 1,482.06 points, or 1.35%, to 111,452.44 points at 10:55 a.m., up from the previous close of 109,970.38 points.
Last week’s extensive mutual fund purchases drove the index to a record weekly gain of 7,697 points. Analysts credit this surge to declining inflation and favourable macroeconomic signs.
Mohammed Sohail, CEO of Topline Securities, linked today’s bullish trend to continuous purchases by local funds. “However, we are also seeing some profit-taking due to political uncertainties,” he noted.
Awais Ashraf, research director at AKD Securities, mentioned, “The decline in commodities and fixed-income yields, along with a stable macroeconomic backdrop, has made equities more attractive.”
Ashraf anticipates a potential interest rate cut at the upcoming Monetary Policy Committee (MPC) meeting, citing robust economic indicators. “Yet, banks may face pressure until the prime minister’s committee reviews the advance-to-deposit ratio (ADR) tax,” he added.
The State Bank of Pakistan’s MPC will convene on December 16 to consider further interest rate reductions.
