Shares at PSX rally 700 points on ‘anticipated decline’ in inflation

Published March 1, 2024
Trading activity at PSX on Friday. — Photo via PSX data portal
Trading activity at PSX on Friday. — Photo via PSX data portal

The Pakistan Stock Exchange (PSX) continued its upward journey on Friday as shares gained over 700 points, with analysts attributing the positive momentum to an anticipated decline in inflation and clarity on the political front.

The KSE-100 index made decent gains throughout the day and closed at 65,325.68 points, up by 747.16 or 1.16 per cent from the previous close of 64,578.52.

Tahir Abbas, head of research at Arif Habib Limited, said the market stayed in positive territory due to an “anticipated decline in inflation and interest rates going forward”.

“Moreover, clarity in the political landscape and the expected formation of a federal government are further boosting investor confidence,” he said.

Shahbaz Ashraf, chief investment officer at FRIM Ventures, noted that the market had gained 4pc on a week-on-week (WoW) basis primarily due to the “formation of the government on federal and provincial levels, coupled with buying interest of foreigners”.

He added that the key names of foreign buying remained Efert, Engro, and Meezan Bank Limited (MEBL) among others.

Ashraf also highlighted that foreigners had bought $20 million worth of shares in the previous three weeks.

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