Bullish momentum continued at the Pakistan Stock Exchange (PSX) on Wednesday as shares gained nearly 500 points to cross 105,000 as lower inflation boosted investor confidence.
The benchmark KSE-100 index rose 495.37 points, or 0.47 per cent, to stand at 105,054.44 points from the previous close of 104,559.07 points at 10:34am.
The surge comes two days after data from the Pakistan Bureau of Statistics showed inflation dropped to 4.9pc in November, the lowest since 2017.
“Investors are optimistic about further reduction in policy rate as inflation falls below 5pc for November 2024,” said Awais Ashraf, director of research at AKD Securities, referring to the upcoming monetary policy meeting scheduled for Dec 16.
He noted that “indications of economic growth recovery, highlighted by a rebound in cement sales and a surge in petroleum sales,” were also bolstering investor confidence.
Overall cement sales posted a meagre increase of 5.58pc in November, reaching 4.146 million tonnes from 3.927m tonnes in the corresponding period last year.
Earlier in the session today, the PSX gained as many as 903.57 points to reach 105,462.64 at 10:25am but receded to 104,940.39 within half an hour during intraday trade.
On Tuesday, according to Topline Securities Ltd, the trade value in the ready market climbed to an impressive Rs57 billion ($203 million), marking the highest level in 18 years.
Adding to the positive sentiment, the country’s trade deficit for November contracted by 19pc year-on-year to $1.59bn, supported by a rise in exports and a decline in imports. This improvement has bolstered expectations of a robust current account surplus, further uplifting market confidence.
More to follow
