Stock market fluctuates, but bulls stay strong

KARACHI: The Pakistan Stock Exchange (PSX) opened on a positive note at 109,970.38 points and quickly posted a hike of over 700 points. Since then, the benchmark KSE-100 index is showing notable fluctuations with the highest of the morning at 111,014.73 points after dropping to the lowest at 110,198.85 points, during trading.

Despite the ups and down, the bulls remain resilient. Similar fluctuations are also visible across multiple sectors, whereby around noon, the energy and telecom sectors were seen trading in red while the telecom sector and the fertilizers were in green, for the most part.

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By 11:30 AM, the index had climbed up high with 1,538.19 points above the opening level, hovering around a new record of 111,508.57 points.

Market analysts are of the opinion that the growth is sustainable and backed by stable drivers, including macroeconomic stability and lower inflation. The State Bank of Pakistan (SBP) is also scheduled to announce the new monetary policy this week, and lower inflation is likely to lead to monetary policy easing. The central bank has held off significant reduction in the interest rates to prevent the overheating inflation.

The foreign exchange reserves have also shown robustness in the past few weeks, and Pakistan has also received climate grants from the Asian Development Bank (ADB). Put together, the strengthening economy and business climate has raised investor confidence with has pushed the stock market upwards.

Around 11:30 AM, the index looked like this: