In a record-setting spree, bulls propelled shares at the Pakistan Stock Exchange above the 98,000 mark on Friday as share prices surged more than 1,000 points in intraday trade.
The benchmark KSE-100 index climbed 1158.13 points, or 1.19 per cent, to stand at 98,486.52 points from the previous close of 97,328.39 points at 9:50am.
Lately, shares at PSX have witnessed multiple record-highs, which analysts have attributed to stabilising macroeconomic indicators — with inflation expected to be between 5pc to 6pc in November, which has also raised market expectations of another rate cut.
Yesterday, the rally was particularly driven by the unlocking of Fauji Fertiliser Company (FFC) and Fauji Fertiliser Bin Qasim Limited (FFBL) dividends which overshadowed political concerns.
“While individuals remain cautious due to prevailing political uncertainty, institutions are actively building equity portfolios, encouraged by declining fixed-income yields and growing confidence in the macroeconomic outlook,” one analyst had highlighted.
Previously, analysts had observed that stocks were no longer as cheap as they were last year but remained reasonably priced, propelled by stabilising macroeconomic conditions.
However, they still warn that major risks to the momentum included “political instability, macroeconomic shocks, excessive government spending, and a deteriorating current account position”.
More to follow
