Karachi: The Pakistan Stock Exchange continued to rise for the third consecutive trading day, and the KSE 100 index closed at 165,736.75 points after rising 1,269.55 points. According to official data, the index recorded a rise of 0.77 percent.
During the trading session, the index rose from a low of 164,355.82 points to a high of 166,100.33 points. Thus, despite the volatility in the market, the buying trend prevailed at the end.
Trading activity in the stock market also increased significantly compared to the previous session. About 578.1 million shares were traded in the ready market, with a total value of Rs 26.20 billion. On the previous trading day, about 402 million shares were traded for Rs 18.07 billion.
The rally also led to an increase in market capitalization. According to available data, its value increased by about Rs 114.86 billion to Rs 18,329.85 billion.
A key backdrop for this recovery in the market is the situation that arose after the State Bank of Pakistan increased the policy rate by 50 basis points. The central bank had increased the interest rate from 11.5 percent to 12 percent. Some market participants were afraid of a 100 basis points increase, so the lower-than-expected increase supported investor confidence.
However, despite the third consecutive day of bullishness, the future trend of the market will depend on other factors, including domestic economic conditions, interest rate expectations, financial results of companies and global oil prices. It will be important for investors to consider these risks as they assess the continuation of the current bullish momentum.
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