PSX opens Thursday with 1,000 points jump, gains 2,500 points as day progresses

KARACHI: The Pakistan Stock Exchange (PSX) opened trading on Thursday with an instant 498 points jump, and inched further up to 111,841.27 points, showing 1,031.06 points gains.

On Tuesday, the benchmark KSE-100 index had undergone correction and experienced significant volatility. Investors also moved towards profit taking as the market went down. However, on Wednesday, the stock market returned to the growing trend, and closed with 1,913 points gains.

Thursday, brought more gains for the market, right from the start. Market analysts are attributing the market’s rally of the past several weeks to improvement in macroeconomic indicators, lower inflation, and strengthening foreign exchange reserves.

Stock market recovers after yesterday’s correction; up 2,000 points

Moreover, the political stability is also lending strength to the bourse – which also seems to have developed resilience in face of minor shocks from factors like protest rallies. The State Bank of Pakistan (SBP) is expected to announce the new monetary policy soon, and market experts are predicting notable slash in policy rate.

So far, the central bank has avoided a major easing in the interest rates to keep inflationary pressures in check. Some market experts are also counting mutual funds’ investments and Islamic Capital Market Conference and Expo to be the drivers of rising investor confidence in Pakistan’s capital market.

Minutes into opening, the KSE-100 looked like this:

Around 11 AM, the index had grown nearly 2,500 points to hover around 113,301.24 points: