Karachi-(Business Reporter)_Pakistan Stock Exchange (PSX) surged to a new peak on Friday, with the benchmark KSE-100 index crossing the 82,000 mark, fueled by forecasts of declining inflation and hopes of monetary loosening. The KSE-100 index jumped 615.16 points, or 0.76%, to reach 82,074.44 from its previous close of 81,459.28.
Buying activity was seen in key sectors, including cement, commercial banks, fertilizer, and refineries, with index-heavy stocks such as MEBL, UBL, ENGRO, and FFC trading in the green. Analysts attributed this bull run to expectations of a sharp drop in inflation and interest rates.
Arif Habib Limited (AHL), a brokerage house, noted that the last trading day of the week saw heavy trade in the first half on the back of FTSE rebalancing, which saw domestic and foreign counters active on the buy side soaking up the supply.
On Friday, 58 shares rose while 40 fell, with the largest positive index contributions coming from HBL PA (+6.84%), MEBL PA (+4.61%), and MCB PA (+4.15%). The largest index drags were FTSE names OGDC PA (-3.13%), HUBC PA (-1.71%), and PPL PA (-2.65%).
Experts added that part of the positivity comes from investors anticipating the International Monetary Fund (IMF) Executive Board’s approval. The IMF is scheduled to review Pakistan’s 37-month Extended Fund Facility (EFF), amounting to about $7 billion, on September 25.
JS Research recommended a “buy-on-dips” strategy, emphasizing banking, fertilizer, E&P, and technology sector stocks. Analysts expect upside acceleration, targeting the 86,000 mark.
Globally, world stocks hovered near record highs on Friday, underpinned by a big interest rate cut from the Federal Reserve earlier this week. The yen eased after Bank of Japan Governor Kazuo Ueda tempered market expectations around imminent rate hikes. The dollar climbed 1.2% on the Japanese currency to 144.29, its strongest in two weeks.
Top volume leaders included FCSC (-1.1%), OGDC (-3.1%), FFBL (-7.7%), WTL (-1.5%), and PACE (0.5%).
Global Market Overview
– World stocks hover near record highs after Federal Reserve’s interest rate cut
– Yen eases after Bank of Japan Governor tempers rate hike expectations
– Dollar climbs 1.2% against Japanese currency to 144.29
Market Data
– 58 shares rise, 40 fall
– Largest positive index contributions from HBL PA (+6.84%), MEBL PA (+4.61%), MCB PA (+4.15%)
– Largest index drags from OGDC PA (-3.13%), HUBC PA (-1.71%), PPL PA (-2.65%)
– Top volume leaders: FCSC (-1.1%), OGDC (-3.1%), FFBL (-7.7%), WTL (-1.5%), PACE (0.5%)
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