KARACHI: The Pakistan Stock Exchange (PSX) continued its bullish trend on Thursday, with the benchmark KSE-100 index crossing the 88,000 mark in intraday trade.
The index gained 851.11 points or 0.98 percent to 88,045.64 points.
According to Mohammad Sohail, CEO of Topline Securities, the rally was driven by aggressive buying of stocks by local investors amid falling bond yields and expectations of a substantial monetary policy rate cut.
“Locals are buying aggressively due to falling bond yields and rate cut expectations,” said Mohammad Sohail. “Markets are pricing in a 200 basis point cut in policy rates.”
Most analysts say that the State Bank of Pakistan (SBP) will cut its policy rate by 200 basis points in its next meeting on November 4.
Earlier on Wednesday, the KSE-100 index rose over 700 points to close above 87,000, a new high.
The session witnessed sustained positive momentum, driven by strong institutional buying in cement and banking stocks.
Overall trading volume fell to 699.3 million shares, compared with Tuesday’s 722.2 million. During the day, the value of the shares was 26.8 billion rupees.
Shares of 447 companies were traded. Out of which the share prices of 214 companies increased, 173 decreased and 60 remained stable. Foreign investors sold shares worth Rs 366.6 million during the day.
