Shares at the Pakistan Stock Exchange (PSX) continued their upward trajectory on Friday as the KSE-100 index gained more than 800 points in intraday trade.
The benchmark KSE-100 index climbed 801.61 points, or 0.7 per cent, to stand at 114,514.78 from the last close of 113,713.17 at 12:06pm.
Yousuf M. Farooq, director research at Chase Securities, said, “The market is upbeat following media reports that the government has convinced banks to lend Rs1.25 trillion at an interest rate of less than 11pc to clear circular debt.”
Additionally, he noted that declining global oil prices were “reshaping inflation expectations”, which drove optimism in cyclical stocks.
“All eyes are now on the IMF programme, as a smooth review could help the market break out of the consolidation phase it has been in for the past two months,” he added.
Yesterday, the stock market resumed its upward trajectory on intense anticipation of further easing monetary policy, with the benchmark index settling above 113,000.
Analysts had attributed the rally to be primarily driven by a sharp decline in international oil prices, which plunged to multi-year lows, which uplifted investor sentiment.
Moreover, speculation surrounding a high-level meeting on the clearance of the long-standing circular debt further fuelled optimism.
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