KSE-100 Index is up 969 points to an Intraday High of 115,773.39.
The Pakistan Stock Exchange (PSX) added to its upward trajectory on Tuesday on the back of hope for a state bank rate cut and good earnings from corporates. The benchmark KSE-100 Index rallied 969.23 points, or 0.84 percent, to an intraday high of 115,773.39 and an intraday low of 115,074.29.
Market Momentum Key Drivers
Pak Kuwait Investment Company’s Head of Research, Samiullah Tariq, said that the market is rising based on anticipation of another rate cut and positive corporate results. A sharp drop in inflation to 1.8 percent year on year for the week to January 9 was strong enough to bolster investor confidence, with the last time that inflation was that low was in October 2014. This has now raised expectations for the accommodative monetary policy to continue at the SBP’s Monetary Policy Committee (MPC) meeting which is slated for January 27.
Supportive Positive Developments for Recovery
According to the World Bank, it has pledged $40 billion to Pakistan under its 10-year Country Partnership Framework (CPF). The funding amount includes $20 billion from the International Development Association (IDA), $20 billion from the International Bank for Reconstruction and Development (IBRD), and $20 billion from the International Finance Corporation (IFC).
The CPF aims to:
Raise tax revenue to 15 percent of GDP.
Increase our renewable energy capacity by 10 Gigawatts. To provide 12 million students with quality education. That would involve providing healthcare services to 50 million people. Revised agreements with 14 Independent Power Producers (IPPs) approved by the federal cabinet are also projected to save Rs1.4 trillion as per their durations. The annual savings of Rs137 billion will relieve power consumers reeling under high electricity costs.
