Stock market maintains momentum, adds over 500 points

KARACHI: The Pakistan Stock Exchange’s (PSX) 100-Index extended its bullish trend on Thursday, advancing by 532.56 points, a 0.68 per cent increase, to close at 78,793.41 points. This rise marks a continuation of the positive momentum seen earlier, as the index stood at 78,260.86 points on the last trading day.

Trading activity was robust, with 804.26 million shares exchanging hands, a significant increase from the 552.56 million shares traded the previous day. The KSE-100 index peaked at 78,996.22 points during the session before experiencing some profit-taking. Despite this, the market closed with substantial gains.

PSX posts long-awaited recovery; shoots past 78,000 mark

The market rally was predominantly driven by a recent treasury bill auction, which saw yields fall by up to 148 basis points. This notable drop in returns on government securities fuelled optimism among investors, leading to increased buying, in anticipation of a potential reduction in the State Bank of Pakistan’s (SBP) policy rate.

Additionally, investor sentiment was buoyed by the Finance Minister’s assurance of continued engagement with the International Monetary Fund (IMF) and the progress towards securing a $7 billion Extended Fund Facility (EFF) next month.