On Wednesday, the Pakistan Stock Exchange (PSX) trade floor was dominated by bulls as shares increased by more than 700 points during intraday trading.
At 12:01 pm, the KSE-100 index was up 704 points, or 1.05 percent, from the previous closing of 66,886.26 points to 67,590.26 points.
Topline Securities CEO Mohammed Sohail stated that the market was becoming more confident after “seeing good progress on the privatization” of the flag carrier and foreign portfolio investment in official documents.
He went on, “With expectations of a rate cut in the coming months, cement stocks are in the spotlight today.”
“The decline in inflation figures signals economic resilience, leading investors to anticipate interest rate cuts of at least 150 basis points,” stated Faran Rizvi, JS Global’s head of stock sales.
But he also said that markets were still trading “at very low multiples, especially in the oil and gas and banking sectors, which are currently undervalued compared to historical norms.”
We also spot opportunities to trade cement stocks. The financial strain on these businesses will lessen as interest rates drop, and a natural increase in demand will support the maintenance of favorable trading conditions for the sector’s stocks, the speaker added.
Significant advances were reported in industries such commercial banking, cement, transportation, technology, and communication, according to the PSX website.
The 22-month lowest inflation reading, which was below the Ministry of Finance’s prediction of 23.5 percent, was responsible for the index’s previous minor improvements, which analysts attributed to the anticipation that the State Bank will lower its policy rate next month.
