PSX Hits New Highs with Mutual Fund Inflows Leading the Way
Director of Chase Securities Attributes Bullish Trend to Earnings Season and Lower Receivables
The Pakistan Stock Exchange (PSX) saw a substantial rally on Tuesday, with the KSE-100 index gaining over 800 points, breaking past the 91,000 mark in intraday trading.
The index climbed by 819.09 points, or 0.91%, reaching 91,014.60, up from the previous close of 90,195.51.
Yousuf Farooq, Director of Research at Chase Securities, credited this strong upward trend to steady inflows from mutual funds shifting away from fixed-income assets. He also pointed out that the current earnings season and a reduction in outstanding receivables for exploration companies helped drive the market’s rise.
Shahbaz Ashraf, Chief Investment Officer at FRIM Ventures, highlighted several key factors behind the market’s momentum, including lower inflation, decreased interest rates, strong profits from PSX-listed companies, a stable rupee, an encouraging external outlook, and appealing valuations. He added that the PSX ranks among the top-performing markets globally in 2024.
The upcoming Monetary Policy Committee (MPC) meeting is expected to be a pivotal moment, with forecasts of a rate cut between 200 to 250 basis points.
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