Bulls dominated the trading session as the Pakistan Stock Exchange (PSX) saw shares surge over 800 points in Tuesday’s intraday trade.
The KSE-100 index rose by 812.70 points, or 0.86 per cent, reaching 95,808.37 points by 11:08 am from the previous close of 94,995.67 points.
Yousuf M Farooq, director of research at Chase Securities, attributed the market rally to media reports dismissing the need for a mini-budget and positive signals from the IMF. However, he expressed caution regarding the political landscape, which could dampen the current momentum. Farooq advised retail investors on the importance of understanding their investments and risks, emphasizing portfolio diversification.
Sana Tawfik, head of research at Arif Habib Limited, also commented on the sustained positive momentum, crediting it to improved macroeconomic indicators and liquidity. “Despite political risks, the fundamentals remain solid,” she said, pointing to the current account surplus as a key factor.
Data from the State Bank of Pakistan, released on Monday, showed a third consecutive monthly surplus of $349 million in October, up from $86 million in September, encouraging government policies to restrict imports.
Awais Ashraf, director of research at AKD Securities, linked the bullish market trend to the IMF’s recent positive remarks post-mission visit, dispelling fears of an inflationary mini-budget and boosting investor confidence. “The market has also benefited from steady buying by mutual funds this fiscal year, spurred by monetary easing, which has balanced foreign outflows from FTSE rebalancing and bank sales,” he stated.
Read: IMF Considers Quarterly Reviews for Pakistan’s $7 Billion Bailout
These positive economic indicators have helped maintain the stock market’s bullish trend, propelling the KSE-100 index to a record high above 95,000 points during last week’s intraday trading.
