Stock market’s rally expected to hike further

KARACHI: On Friday, the Pakistan Stock Exchange (PSX) reached yet another historic high, crossing the 93,000 points mark for the first time in history.

During the outgoing week, the benchmark KSE-100 index posted massive gains of over 2,400 points. Out of these, 771 points were added only on Friday when the index closed at 93,291.68 points.

Multiple factors have fueled this extraordinary performance of the index, starting with the State Bank of Pakistan (SBP) announcing a 250 bps policy rate cut. The addition of eight more Pakistani companies in MSCI Frontier Markets Small Cap Index also lent strength to the investor sentiment. The Sukuks also generated an impressive Rs 339 billion for the government, with the yields declining a little as well.

After weeks of foreign investors clocking in as net sellers, the outgoing week also saw incoming foreign investment. Local investors and institutions played a major role in boosting the index.

The KSE-100 index opens at 93,291.68 points today, amid hopes of continued economic recovery and political stability to keep the momentum strong at the stock market.

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