Karachi: On Thursday, bulls took back control of the Pakistan Stock Exchange (PSX), as intraday shares increased by over 800 points, a move analysts credited to improving macroeconomic stability.
A day ago, the PSX recovered just 131 points after breaking its record-breaking streak on Tuesday as investors engaged in value-hunting.
At approximately 11 am, the benchmark KSE-100 rose 548.58 points, or 0.59 percent, from the previous closing of 93,355.42 to 93,904.00. With a spike of 806.19 points, the index reached 94,161.61 points at 1:44 pm.
The director of research at Chase Securities, Yousuf M. Farooq, stated, “As returns decline in fixed-income mutual funds, investors are increasingly moving cash into equities.”
Also read: PSX KSE-100 Index Achieves New Record
He emphasized that things were becoming better all around. “Macro indicators appear stable, though some tax adjustments may be necessary to meet targets.”
Farooq observed that bike sales were increasing along with car sales and fast-moving consumer goods (FMCGs) and that cyclical debt buildup had stopped.
He emphasized that the real estate market was also “displaying indications of activity, and buyers are feeling a sense of urgency because they are afraid of missing out.”
He added, “However, large rallies can lead to brief, sharp corrections. Investors should be mindful of what they are buying and understand their reasons for doing so.”
“Stocks are long-term instruments and should not be bought with money needed in the short term.”
Also read: PSX Soars Over 1,100 Points as Bulls Anticipate Rate Cut Ahead of MPC Meeting
“The attractive valuation of the KSE-100 index is drawing investors back to equities, driven by declining fixed income yields and commodity prices along with strengthening macroeconomic stability,” said Awais Ashraf, director of research at AKD Securities.
“We are now in a stronger position to secure more flexible terms with the IMF, as previously anticipated in the board’s review, with a controlled current account and an overall improved fiscal outlook,” he said.
