Analysts said that investors’ interest in purchasing stocks has strengthened, and the Pakistan Stock Exchange (PSX) continued to reach new highs on Friday as shares crossed the 109,000 barrier by another 800 points.
The benchmark KSE-100 index ended the session up 814.99 points, or 0.75 percent, from its previous finish of 108,238.96 to 109,053.95 points.
Only one day before to the surge, the PSX saw its third-largest single-day rally, gaining 3,134.63 points. It comes amid persistent optimism following Pakistan’s annual inflation rate falling to 4.9 percent in November, the lowest since 2017.
The “absence of attractive alternative investment opportunities is attracting investors to equities, which are currently available at relatively low multiples,” according to Awais Ashraf, director of research at AKD Securities.
He emphasized that the index’s upward trajectory was also being aided by anticipation of an interest rate drop at the next meeting of the Monetary Policy Committee [on December 16].
Following their deal with Pakistan Mobile Communications Limited on tower assets, Ashraf noted that Engro and Dawood Hercules together added more over 400 points to the index during today’s trading session.
Mohammed Sohail, the chief executive of Topline Securities Ltd., yesterday credited the session’s outstanding performance to local mutual funds’ ceaseless purchases, which enable local bourses to set new records on a daily basis.
Meanwhile, the market reached new highs due to declining loan rates, government debt stock, bond yields, and rupee stability, according to Ahsan Mehanti of Arif Habib Corporation.
With a traded value of Rs63.0 billion ($227 million), market activity soared to a nearly 19-year high, marking another milestone for the PSX, according to Mehanti.
The day’s intensive trading activity was highlighted by record-breaking volumes, which showed widespread engagement across industries. The main factor that kept the bull run going was the unrelenting buying by local mutual funds, which propelled the surge.
