Bulls continued to dominate the trade floor on Friday as shares at the Pakistan Stock Exchange (PSX) climbed more than 500 points in intraday trade, marking a new record.
The benchmark KSE-100 index increased by 532.44 points, or 0.57 per cent, to stand at 94,724.33 points from the previous close of 94,191.89 points at 11:11am.
Yousuf M. Farooq, director of research at Chase Securities, attributed the gains to flows. Yesterday, he had explained that as returns decline in fixed-income mutual funds, investors were increasingly moving cash into equities.
He reiterated his previous remarks that macroeconomic indicators were moving towards stability, noting that circular debt accumulation had halted and bike sales were on the rise, in addition to sales of cars and fast-moving consumer goods (FMCGs).
Farooq highlighted that the property market was also “showing signs of activity, and there is a sense of urgency among buyers fearing they might miss out”.
Yesterday, the stock market had crossed yet another all-time high of 94,000.
Topline Securities Ltd had attributed the trend to growing economic optimism, fuelled by reports that the International Monetary Fund (IMF) expressed no concerns over Pakistan’s progress in meeting revenue collection targets. As a result, fears of an imminent mini-budget and new taxation measures have eased.
More to follow
