- Increases 295 points as GDP growth figures, expectations of pro-growth budget add to rally
The bull run at the Pakistan Stock Exchange (PSX) continued on Tuesday as the benchmark KSE-100 Index crossed the 48,000-point level, registering its highest closing in almost four years.
The KSE-100 Index settled at 48,191, an increase of 295 points, which was the highest closing since June 9, 2017.
“The recently-announced GDP growth figures, and the sentiment around the government and SBP's current pro-growth approach to boost the economy are boosting morale at the exchange,” Tahir Abbas, head of research at Arif Habib Limited, told Business Recorder. “There are expectations that the upcoming budget will also be pro-growth even as the government looks to increase tax revenue.
“Due to this approach, the expectation is also that the PSDP allocation would be higher, translating into higher economic activity across the board which bodes well for the cyclical sectors and overall market.”
Abbas said other ‘positive’ news contributing to the sentiment include developments around payments to independent power producers, interest rate outlook along with buoyant liquidity in the market.
Samiullah Tariq, head of research at Pak-Kuwait Investment Company, echoed a similar view.
“Expectations of a stimulus package, lower-than-expected inflation, and positive expectations from the budget are all positive triggers,” said Tariq.
A total of 1.392 billion shares were traded during the day with the value of shares clocking in at Rs30.5 billion.
WorldCall Telecom again led the volumes chart with 354.1 million shares changing hands, followed by Byco Petroleum Pakistan Limited (94.6 million) and Silk Bank Limited (86.1 million)
Sectors fueling the bullish sentiment included oil and gas exploration, fertilizer, and pharmaceutical sector (24.48 points).