PSX trading above 98,000 points

KARACHI: The Pakistan Stock Exchange (PSX) crossed 98,000 points limit early on Friday. Yesterday, the PSX closed above the psychological limit of 97,000 points, with over 1,700 points gains during the trading day.

Today, the index opened at 97,328.39 points, and started trading with a quick jump of nearly 600 points. Minutes into trading, the market grew over 7,00 points to trade above 98,000 points. The bullish momentum is a continuation from Thursday.

Early on Thursday, the benchmark KSE-100 index showed signs of slowdown, creeping in from Wednesday’s decline. However, soon after, the bourse catapulted upwards, defying all political noise and posted massive gains.

The KSE-100 index has been on a bullish journey for multiple weeks now, and analysts are of the opinion that the increase is based on solid foundations of higher earnings, lower government bond yields, and improving macroeconomic indicators.

Put together, these factors mean that the investor sentiment can withstand the shocks coming from political instability jerks, such as the upcoming protest rally by an opposition party.

Federal Finance Minister Muhammad Aurangzeb has assured of the success of International Monetary Fund’s (IMF) mission, and he has also reassured that no new taxes will be implemented on the salaried class. Alongside, the Asian Development Bank (ADB) has signed on the loan agreement of $500 million in green financing for Pakistan.

With all these developments, the foreign exchange reserves of the State Bank of Pakistan (SBP) are also stabilising, which is lending strength to incoming foreign investment.

Also read: Stock market recovers; posts massive gains