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

Editorial

Electricity relief
Updated 05 Apr, 2025

Electricity relief

If govt ensures that requisite power reforms are implemented, it will earn much praise for reforming a vital segment of the economy.
Trump’s trade wars
05 Apr, 2025

Trump’s trade wars

THE so-called reciprocal tariffs rolled out recently by American President Donald Trump have expanded his vicious...
Legalised land grab
05 Apr, 2025

Legalised land grab

THE Modi government has passed a new bill targeting the Muslim community, this time eyeing swathes of priceless real...
More than words
Updated 04 Apr, 2025

More than words

Holistic development can only work when there is organic and credible political activity in the province.
Poor publicity
04 Apr, 2025

Poor publicity

FORTUNE does not seem to be favouring the PTI — at least not yet. With the party’s founder confined from public...
Party pooper
04 Apr, 2025

Party pooper

INDIA’s role of a spoilsport is tiresome. From pulling books from shelves, such as Wendy Doniger’s The Hindus: ...