Stock market likely to maintain bullish momentum today

KARACHI: The Pakistan Stock Exchange (PSX) continued the bullish run from last week into Monday (yesterday), shooting up to historic highs, past 91,000 points around noon.

However, some of these extraordinary gains were lost before the benchmark KSE-100 index closed at 90,195.51 points – still managing to post 200 points improvement.

Stock market surges past 91,000 points mark

Today, the index opens amidst improving economic indicators along with expectations of reduction in the State Bank of Pakistan’s (SBP) monetary policy rate. The central bank’s monetary policy committee (MPC) will meet early next week, and considering the controlled rate of inflation, the interest rates are predicted to go down.

Moreover, the current account surplus, recent increase in foreign direct investment (FDI) as well as a good earnings season have all contributed to the PSX rally.

The positive momentum is expected to continue this week as well, albeit the rate of growth might slow down as stability sets in and selling pressures begin.