Capital markets topped the 101,350-point mark on Thursday, as investors built short and long positions, encouraged by easing political tensions and a brighter economic outlook, with lower inflation estimates weighing on sentiment. raised
The benchmark KSE-100 shares index of the Pakistan Stock Exchange (PSX) closed at 101,357.32 points, up 1,274.55 points or 1.27 percent after touching an intraday high of 101,496.17 points.
Topline Securities attributed its market rally to investor optimism on news that the State Bank of Pakistan (SBP) has approved a loan from the Asian Development Bank (ADB) as part of the government’s Climate Change and Disaster Resilience Enhancement Programme. ) received $500 million from CDREP).
The disbursement is expected to help SBP with $12 billion in reserves at the end of November 2024.
The brokerage said in its report, “The banking sector continued its upward momentum, growing by 1.8 per cent. The removal of minimum deposit rate (MDR) requirement for corporate deposits boosted investor interest in the sector.” attracts,” the brokerage said in its report.
In terms of trade value, Pakistan Petroleum Limited (PPL) leads the market with Rs 1.93 billion, followed by Pakistan State Oil (PSO) with Rs 1.88 billion, The Searle Company (SEARL) with Rs 1.63 billion, Oil And Gas Development Company Limited (OGDC) with Rs 1.53 billion and Attock Refinery Limited (ATRL) with Rs 1.29 billion.
The top contributors to the index were PPL, Service Industries Limited (SRVI), Bank Al Falah Limited (BAFL), Engro Corporation (ENGRO) and SERL, which together Contributed 400 points to the rise of the index.
According to Topline Report, Bank of Punjab (BOP) led the market in volume, with 95 million shares traded.
Analysts attributed the impressive streak to several factors, particularly the government’s unwavering commitment to implementing reforms.
The index crossed the 100,000-point mark for the first time in history on Thursday, reflecting a 60% year-to-date gain driven by a mix of 47% capital gains and 13% dividend yield.
According to analysts, policy efforts to turn fiscal and external accounts into surpluses and reduce the cost of doing business contributed to boosting investor sentiment. They added output cuts and low inflation expectations are also driving the market.
In its monthly Economic Update and Outlook, the Finance Division forecast inflation at 5.8%-6.8% in November, and again at 5.6%-6.5% in December.
“Inflation is expected… [to] Further decline to 5.6% – 6.5% by December 2024,” said the report released on Wednesday.
The central bank cut interest rates by 250 basis points in early November in an effort to revive the sluggish economy amid a sharp drop in inflation.