Bulls continue stampede at PSX as shares surpass 98,000

Published November 25, 2024
Bullish momentum see at the Pakistan Stock Exchange on Monday — PSX data portal
Bullish momentum see at the Pakistan Stock Exchange on Monday — PSX data portal

Bullish momentum continued at the Pakistan Stock Exchange (PSX) on Monday as shares gained more than 600 points in intraday trade.

The benchmark KSE-100 index climbed 621.85 points, or 0.64 per cent, to stand at 98,420.08 from the previous close of 97,798.23 points at 12:45pm. Finally, the index closed at 98,079.78, up by 281.55 points, from the previous close.

Mohammed Sohail, chief executive of Topline Securities, said that that the market was rallying on “unconfirmed speculation” that the State Bank of Pakistan (SBP) “may give relaxation to banks on minimum deposit rates [MDR] for savers”.

While Yousuf M. Farooq, director research at Chase Securities, said, “A rally in banking stocks, driven by rumours of the removal of ADR [advance-to-deposit ratio] tax and changes in MDR , has led to strong market performance today, even as investors remain cautious in other sectors.”

“Bank Al Habib, Meezan Bank, Bank Alfalah, and MCB are leading the surge,” he observed, adding that this was due to “consistent fund inflows into the equity market, as individuals and institutions shift from fixed-income investments to equities amid declining yields”.

Farooq noted that despite jitters, the market appeared to have largely ignored political noise.

“We advise retail investors to focus on long-term investment strategies, avoiding short-term market movements,” he recommended. “A disciplined approach of saving and investing small amounts regularly in a diversified portfolio, while keeping liquidity needs in mind, remains a prudent strategy.”

Awais Ashraf, director research at AKD Securities, said, “Inflows from institutions, driven by declining fixed-income yields, have sustained the index’s upward momentum, offsetting the negative impact of the ongoing political situation.”

“Additionally, commercial banks expected to be exempt from ADR taxation have positively influenced today’s index performance,” he highlighted.

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

Opinion

From hard to harder

From hard to harder

Instead of ‘hard state’ turning even harder, citizens deserve a state that goes soft on them in delivering democratic and development aspirations.

Editorial

Canal unrest
Updated 03 Apr, 2025

Canal unrest

With rising water scarcity in Indus system, it is crucial to move towards a consensus-driven policymaking process.
Iran-US tension
03 Apr, 2025

Iran-US tension

THE Trump administration’s threats aimed at Iran do not bode well for global peace, and unless Washington changes...
Flights to history
03 Apr, 2025

Flights to history

MOHENJODARO could have been the forgotten gold we desperately need. Instead, this 5,000-year-old well of antiquity ...
Eid amidst crises
Updated 31 Mar, 2025

Eid amidst crises

Until the Muslim world takes practical steps to end these atrocities, these besieged populations will see no joy.
Women’s rights
Updated 01 Apr, 2025

Women’s rights

Such judgements, and others directly impacting women’s rights should be given more airtime in media.
Not helping
Updated 02 Apr, 2025

Not helping

If it's committed to peace in Balochistan, the state must draw a line between militancy and legitimate protest.