Stocks on Thursday breached the historic 100,000-point barrier, buoyed by political calm and optimism over a projected decline in November inflation, strengthening expectations for deeper monetary easing.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index surged 813.5 points or 0.82% to close at historic 100,082.77 points, after hitting an intraday high of 100,540.29 points.
The market had retreated two days back due to political instability, with the apex index suffering an over 3,500-point crash after PTI’s march on Islamabad turned violent.Play Video
However, it bounced back to surge by more than 4,600 points and close at 99,269.25, soon after the party had called off its protest following a government crackdown on protesters.
Market experts credited the historic achievement to several factors, particularly the government’s unwavering commitment to implementing reforms.
Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, told Geo.tv that a fall in yields and lower inflation expectations are also driving the market.
Inflation is projected to slow to 5.8%-6.8% in November, and then further to 5.6%-6.5% in December, the finance ministry said in its monthly economic report.
