Stocks got off to a flying start on Monday, touching intraday highs above 91,000 points in earnings-fuelled trade.
As investors bolster their portfolios with blue chips betting on the central bank’s cues as it meets in the first week of November to decide on the next rate hike.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) rose 1,026 points to 91,020 points at 12:13 am, higher than the previous close of 89,993.96 points.
Analysts attributed the rise to a number of reasons, as the market was jittery on speculation of a major easing in monetary policy stance on November 4.
Sana Tawfiq, head of research at Arif Habib Limited, told Geo.tv that the increase was due to the results season as well as better liquidity in the country.
Speaking on the sidelines of the 2024 IMF-World Bank Annual Meeting in Washington DC, State Bank of Pakistan (SBP) Governor Jameel Ahmad said that he expects the country’s foreign exchange reserves to recover by the end of this fiscal year (FY2025). Reserves will reach 13 billion dollars. ).
According to Ahmed, the sharp increase in both exports and worker remittances is the main reason for the improvement in the current account balance.
As of October 11, 2024, SBP’s foreign exchange reserves rose to $11 billion from a low of $3.1 billion at the end of January 2023, thanks to a lower current account and better financial flows.
Arif Habib Corporation’s Ahsan Mahanti said there were strong vibes that the State Bank will take a tighter stance on policy rates in its upcoming meeting, while the government’s talks on privatization of loss-making state-owned enterprises encouraged investors. extended
Speculations for a policy rate cut of up to 400bps by December continue, as analysts say there is room for easing, which has also revived foreign investor interest in the country’s capital markets.
