The Pakistan Stock Exchange (PSX) surged over 1,000 points on Friday, fuelled by a strong macroeconomic outlook, continuing its record-breaking streak.
The benchmark KSE-100 index gained 1,060.06 points, or 1.09%, climbing to an intraday high of 98,388.45 points, up from its previous close of 97,328.39 points.
Tahir Abbas, Head of Research at Arif Habib Limited, told Geo.tv that the market is in continuous positive momentum.
The primary reasons behind this, he said, are the economic indicators, improvement of macros, plus the expectation that the inflation number will be around 4.5% this month.
Then, Abbas added, there is an expectation that interest rates will be cut further next month.
The analyst also noted the key role of liquidity in driving the market’s growth, saying: “Apart from that, local liquidity is very robust. Money is coming into the market continuously from different sets of investors.”
Apart from positive macros, the influx of liquidity from mutual funds, banks, and insurance companies is also driving the market’s positive momentum and despite such consistent gains, the PSX still remains attractive to investors.
Markets experts believe that surging forex reserves and speculations over government decisions on economic reforms and privatisation have played a catalyst role in the record surge at the PSX.
This is a developing story and is being updated with details.
