Stocks maintain bullish momentum, gain 549 points

Published October 6, 2022
<p>A snapshot of trading activity at the Pakistan Stock Exchange on Thursday. — Photo via PSX website</p>

A snapshot of trading activity at the Pakistan Stock Exchange on Thursday. — Photo via PSX website

Shares at the Pakistan Stock Exchange (PSX) extended gains on Thursday, with analysts attributing the positive sentiments to the rupee's appreciation and expectations that the monetary policy would remain unchanged.

The benchmark KSE-100 index gained 549.15 points, or 1.32 per cent, to close at 42,160.57 points.

The index saw an intraday high of 590.13 points, or 1.42pc, around 3:30pm.

Head of Research at Intermarket Securities, Raza Jafri, said lower T-bill yields and the rupee's continued strength ahead of Monday's monetary policy announcement by the State Bank of Pakistan (SBP) led the KSE-100 index higher.

"A potential softer stance by the IMF (International Monetary Fund), with the finance minister set to present Pakistan's case in Washington next week, is also being watched," he added.

AKY Securities Chief Executive Officer Amin Yousuf said the primary reason for the index's rise was the rupee's appreciation and Finance Minister Ishaq Dar's statement that the dollar's value would be brought down to Rs200.

He added that the market was expecting the interest rate to be maintained this time and a reduction when the SBP's Monetary Policy Committee (MPC) met the next time, which was driving the index upwards.

"Stocks traded higher led by oil and cement scrips on strong valuations," said Arif Habib Corporation's Ahsan Mehanti.

The Asian Development Bank's (ADB) announcement of around $2.3-2.5 billion in aid and a narrower trade deficit in September played a catalyst role, he added.

Provisional data from the Pakistan Bureau of Statistics released earlier this week showed that the import bill fell by 19.72pc to $5.26bn in September from $6.56bn in the same month last year. On a month-on-month basis, the import bill declined by 13.21pc.

As a result of the decline in imports, the trade deficit in September fell by 30.62pc to $2.88bn this year from $4.15bn over the corresponding month last year.

First National Equities Limited Director Amir Shehzad said the market fundamentals appeared to be good and funds were being received for flood relief efforts.

"If things on the political side remain settled, the market can cross 45,000 points."

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Worsening hunger
Updated 08 Dec, 2022

Worsening hunger

THAT the dollar liquidity crunch has started hurting the import of essential items such as vegetables and raw...
Bannu beheading
Updated 08 Dec, 2022

Bannu beheading

The state must take up the cudgels and neutralise barbarism before it spreads.
Smog misery
08 Dec, 2022

Smog misery

IF 2022 has taught us anything, it is that generations of reckless disregard for Mother Nature has accrued very ...
Disquiet on the western front
Updated 07 Dec, 2022

Disquiet on the western front

IT is very difficult for Pakistan to be delinked from Afghanistan, because of reasons of geography and history.
Fuel from Russia
07 Dec, 2022

Fuel from Russia

THE apparent headway made with Russia for the purchase of its crude oil, petrol and diesel at discounted prices is a...
More women SHOs
07 Dec, 2022

More women SHOs

IT is encouraging to see more employment avenues opening up for women in Pakistan, with an increasing number of...