Karachi : The Pakistan Stock Exchange (PSX) see its bull run during a historic trend courtesy of reports of a possible interest rate cut by the State Bank of Pakistan (SBP), as well as improving economic sentiments. Market rallied to record levels last week as investors’ enthusiasm pushed up the benchmark KSE-100 Index by 1,868 points, or 2%, to hit an all time high of 116,169 points.
Investors have resorted to key sectors and the trading session began with a good gain of 1,044 points. The index rose as much as 2,380 points during the heavy buying activity of the day. The index was ending with a gain of 1,867.61 points by close of trading.
The share prices of 51.57 per cent of listed companies rose. The market capitalization leap by Rs 224 billion grabbed on enhanced participation and a spurt in economic confidence.
Strong trading volume also continued, with 352.09 million shares changing hands — a colossal jump over previous sessions.
This historic rally was attributed to reports of an imminent cut in the SBP’s policy rate that had reawakened hope of a better investment environment and jump started economic activity.
However, investors now want to hear more about the deflationary interest rate outlook as well as reforms that will help continue this momentum in the coming sessions.
