PSX Rises By More Than 700 Points During Trading

On Friday, the Pakistan Stock Exchange (PSX) showcased robust performance, witnessing a surge of over 700 points during intraday trading. The KSE-100 index climbed by 712.53 points, or 0.98%, hitting 73,370.58 points at 10:58am, compared to the previous close of 72,658.05.

According to Mohammed Sohail, CEO of Topline Securities, there’s anticipation that inflation might decline faster than expected, prompting investors to purchase shares in companies poised to benefit from lower interest rates.The market rebounded from a three-day downtrend the previous day, with selective value-hunting contributing to the KSE 100-share index closing positively.

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Yousuf M Farooq, Director of Research at Chase Securities, noted traders’ expectations of May inflation hovering around 15% and forecasts of interest rate declines in the upcoming financial year, driving interest in cyclical stocks.

Ahsan Mehanti of Arif Habib Corporation credited the PSX’s mild recovery to the World Bank’s reiteration of commitment to collaborating with Pakistan on structural reforms and sustainable development. Additionally, discussions on privatizing struggling state-owned enterprises, upcoming loan talks with the IMF, and the anticipated visit of the Saudi crown prince for investment deals also impacted sentiment.

Raza Jafri, CEO of EFG Hermes Pakistan, highlighted growing expectations for monetary easing amid stable external accounts and real interest rates at approximately +5%. He observed increased buying interest, particularly in previously underperforming sectors like cement, from both local and foreign investors.