Bulls push PSX to new high, index gains over 1.2%
Bullish momentum persisted at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 crossed the 69,000 level for the first time in its history during trading on Monday.
At 12pm, the benchmark index was hovering at 69,242.36 level, an increase of 825.58 points or 1.21%.
Buying was led by the index-heavy energy sector, with stocks of companies including OGDC, PPL, PSO, SSGC, and SNGPL trading in the green.
Experts attributed the rally to a decrease in inflation numbers, which clocked in at 20.68% YoY for March 2024, turning real interest rates positive for the first time in 38 months, raising hopes for a policy rate cut by the central bank.
Furthermore, foreign investors and institutions injected additional liquidity through buying, supporting the market’s momentum.
During the previous week, the bourse witnessed a bullish trend on the back of healthy buying by both local and foreign investors coupled with institutional support.
The benchmark KSE-100 index surged by 1,274.66 points on week-on-week basis, to close at 68,416.78 points.
Globally, Asian markets fluctuated Monday as traders weighed the chances of the Federal Reserve cutting interest rates this year after a forecast-busting US jobs report dented hopes for a first move in June.
Wall Street’s three main indexes rallied Friday on news that 303,000 jobs were created in the United States in March, with investors focusing on the positives for the economy instead of the monetary policy implications.
However, observers warned that the figures – which also showed unemployment falling and wage growth still strong – could prevent the Fed from cutting rates three times in 2024, as it has previously indicated.
Traders are now awaiting the release this week of minutes from the central bank’s most recent meeting, as well as the latest consumer price index reading.
