KARACHI: In a robust start to the week, the Pakistan Stock Exchange (PSX) showcased a bullish trend, surpassing the 62,000 milestone in intraday trading. As reported by the PSX website, the benchmark KSE-100 index demonstrated an impressive gain of 701.86 points or 1.14%, reaching 62,393.11 points at 10:24 am on Monday.
Raza Jafri, Head of Equity at Intermarket Securities, noted that despite a higher Consumer Price Index (CPI) in November indicating inflation, certain market participants anticipate a potential rate cut in the upcoming Monetary Policy Committee’s (MPC) meeting. Jafri highlighted the attraction towards affordable energy stocks, fueled by optimism for circular debt improvement, and suggested the possibility of a shift of funds from fixed income to equities, signaling a positive trend.
The previous week concluded on a triumphant note, with the benchmark index achieving a new all-time high on Friday. This success was attributed to increased foreign portfolio investment, encouraging economic indicators, and the strengthened rupee resulting from Saudi Arabia’s rollover of a $3 billion deposit. The KSE-100 index surged by 1,160 points, or 1.92%, closing at 61,691 points after maintaining a positive trajectory throughout the day.
Analyst Ahsan Mehanti at Arif Habib Limited highlighted the record close, attributing it to rupee stability post the Saudi deposit rollover, robust economic data, and a notable increase in foreign portfolio investment. Reports of a $30 million net Foreign Portfolio Investment (FIPI) over a six-year high in November 2023, coupled with government discussions about privatizing struggling State-Owned Enterprises (SOEs), played pivotal roles in achieving this milestone.
