Stocks scaled a new peak on Friday, with the benchmark index topping the 82,000 mark in the intraday trade, as investors went on a selling spree driven by economic optimism amid easing inflation and further monetary loosening by the central bank, traders said.
The KSE-100 index jumped by 770.68 points, or 0.95 per cent, to reach 82,229.96 from its previous close of 81,459.28 by 10:49am.
Analysts attributed this bull run to expectations of a sharp drop in inflation and interest rates. They added that government securities now have a kinked yield curve, with 2-year and 5-year yields above the 3-year yield.
Buying activity was seen in key sectors, including cement, commercial banks, fertiliser, and refineries, with index-heavy stocks such as MEBL, UBL, ENGRO, and FFC trading in the green.
Experts added that part of the positivity comes from investors anticipating the International Monetary Fund (IMF) Executive Board’s approval.
The IMF is scheduled to review Pakistan’s 37-month Extended Fund Facility (EFF), amounting to about $7 billion, on September 25.
On Thursday, the Pakistan Stock Exchange (PSX) rose on improved local macroeconomic indicators and a larger-than-expected reduction by the Federal Reserve, with the KSE-100 index closing at 81,459.29, a gain of 997.95 points or 1.24%.
This is a developing story and is being updated with more details.
