The Pakistan Stock Exchange witnessed an incredible surge on Wednesday when the KSE-100 index surged by 736.10 points and shot up by a high 0.81% to a new high of 91,600.19 in intra-day trade following its close at 90,864.09 points on the previous session. This is a bullish trend, fueled by strong investor optimism, caused due to expectations of State Bank of Pakistan cutting off rate in the monetary policy announced on November 4 for the Monetary Policy Committee’s meeting, when specialists said they expect 200 bases points cut in rates policy to 15.5%.
Head of Research at Pakistan-Kuwait Samiullah Tariq stated that the rally has been supported by positive market drivers such as declining yields, few alternatives to invest in because of taxes, and strong corporate earnings. The fading political uncertainty supports the rally, allowing the government to focus on IMF-supported reforms, said Director of Research at Intermarket Securities Saad Ali.
Favorable liquidity conditions, declining interest rates, and stable global oil prices have further reinforced the momentum of the market. Fresh optimism about the economic prospect gives investors new opportunities as otherwise a challenging global landscape for investment.
