Thursday’s shock to the audo Pakistan Stock Exchange/PSX Narolloged over 108,000 with analysts justifying rally on back of positive macroeconomic indicators which took PSX index up over 3,100 points.
KSE-100 Index was up +3,134.63, or 2.98% at 108,238.96 vs previous close of 105,104.33 points.
Meanwhile, Pakistan brought down its annual inflation rate to 4.9pc in November the lowest since 2017 and the rally continues. And last week is its highest it has ever been for the PSX to hit that 100,000 mark.
The trade deficit shrank 19% year-over-year to $1.59 billion, a continued positive surprise in results and confirmed hopes for a strong current account surplus on the back of market optimism.
Awais Ashraf, Director of Research at AKD Securities “In the current calendar year 68 per cent index rally has been largely driven by institutional buying, mainly from mutual funds particularly in the latter half — sustained aggressive.”
He said this rally was on decline in fixed-income yields during a consolidated macroeconomic stability.
The PSX ran its bullish course yet again on Wednesday, with analysts pointing out the capitulation not only among retail but also investor optimism on a forthcoming interest rate reduction by the MPC in its meeting on Dec 16
coming interest rate reduction by the MPC in its meeting on Dec 16. They pointed to economic growth recovery data, cement sales up and petroleum sales spurt that also countered the sentiment boosters.
