Shares at PSX climb 1,200 points in unabated rally

Published November 29, 2024
Bullish momentum maintained at the Pakistan Stock Exchange (PSX) on November 29. — PSX data portal
Bullish momentum maintained at the Pakistan Stock Exchange (PSX) on November 29. — PSX data portal

Bulls continued their stampede at the Pakistan Stock Exchange (PSX) on Friday as shares gained more than 1,200 points in an unabated rally.

The benchmark KSE-100 index climbed 1,274.55 points, or 1.27 per cent, to stand at 101,357.32 points from the last close of 100,082.77 at 4:38pm.

Awais Ashraf, director research at AKD Securities, said the KSE-100 index was “maintaining its upward momentum, driven by expectations of a substantial rate cut in the upcoming Monetary Policy Statement (MPS) scheduled for next month as the KIBOR [Karachi Interbank Offered Rate] and T-bill yields approach 13pc”.

The State Bank of Pakistan (SBP)’s Monetary Policy Committee is due to meet on December 16 to determine changes in the key interest rate.

Yesterday, the KSE-100 index crossed the 100,000 milestone for the first time, which analysts attributed to the new International Monetary Fund loan coupled with fiscal and monetary discipline improving investors’ sentiments.

They also noted a faster-than-expected fall in inflation and interest rates generating cash liquidity to the stock market.

Despite the gains, the market’s price-to-earnings ratio still traded at 5x compared to the historical average of 7x, according to Mohammed Sohail, chief executive of Topline Securities.

He noted there was a 20pc annual return in the rupee and a 13pc annual return in the greenback which stood as a “testament to resilience and potential” of the PSX.

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.