On Thursday, stocks extended their gains, with analysts blaming the strong recovery of the rupee and soaring global equities for the bullish trend.
The benchmark KSE-100 index rose 423.99 points or 1.03 percent by 10:44 am to reach 41,492.86 points, according to the Pakistan Stock Exchange (PSX) website.
According to Ahsan Mehanti of Arif Habib Corporation, the bullish trend in the stock market throughout results season was maintained by soaring global equities and a swift rupee recovery.
His view was shared by Raza Jafri, head of research at Intermarket Securities, who said the rupee’s recovery was feeding into improved sentiment in the stock market.
“Valuations are at distressed levels and the bounce can extend in the near term. Investors who had lost interest in the last few months are now circling back,” he added.
After being battered for weeks due to political and economic turmoil, the local currency rebounded by Rs9.59 yesterday, marking the highest one-day rise in decades.
Mehanti said that the announcement of the Chinese debt rollover and the IMF’s declaration that Pakistan had finished all prior activities necessary for the seventh and eighth reviews served as a catalyst for the stock market’s increase.