Shares at Pakistan Stock Exchange (PSX) reached an all-time high in intraday trade on Friday as the benchmark KSE-100 index crossed the 82,000 level.
At 10:49am, the KSE-100 index climbed 770.68 points, or 0.95 per cent, to stand at 82,229.96 points from the previous close of 81,459.28 points.
Yousuf M Farooq, director research at Chase Securities, attributed the momentum to the fall in yields reported yesterday.
“The market is expecting a sharp decline in inflation and interest rates,” he said.
Pakistan Investment Bonds (PIB) yesterday saw a significant 335 basis points drop in the cut-off yield for the three-year tenor, while the government borrowed less than 50 per cent of the target.
The sharp reduction in the interest rates amid receding inflation has changed the scenario. The government rejected all bids for treasury bills auction on Wednesday, indicating to the financial market that the government was trying to reduce the cost of borrowing, which eats up the entire tax revenue collection in servicing its massive debt.
On Thursday, the PSX’s benchmark indez had climbed nearly 1,000 points, which analysts had attributed to the US Federal Reserve’s rate cut, the upcoming International Monetary Fund (IMF) Executive Board meeting scheduled for September 25th, and falling inflation numbers.
More to follow
