Bulls continued to dominate the trade floor on Thursday at the Pakistan Stock Exchange (PSX) as shares increased by nearly 200 points amid mixed economic indicators.
The benchmark KSE-100 index increased by 234.14 points, or 0.2pc, to stand at 117,242.22 points from the previous close of 117,008.08 points at 3:19pm.
Yousuf M. Farooq, research director at Chase Securities, said, “The market is jittery today due to higher-than-expected trade deficit numbers.
“Some participants suggest that the decline in interest rates might slow in the coming months, as the central bank may prioritise addressing external account concerns,” he highlighted.
He noted that a “significant current account surplus could pave the way for lower rates over the next year”.
However, he cautioned if high import volumes persist, the State Bank of Pakistan (SBP) “could face limited room” for a further cut in interest rates.
“While inflation is on a downward trend, sustained high import levels could exert pressure on the external account,” he added.
More to follow
