Bulls continued their stampede post-Eid as shares at the Pakistan Stock Exchange (PSX) soared to an all-time high, gaining over 1,300 points on Thursday in intraday trade. Analysts attributed this surge to the “dovish outlook” of rating agencies for the country.
The benchmark KSE-100 index gained 1,366.93 points, or 1.78 percent, reaching an all-time high of 78,073.70 from the previous close of 76,706.77 points at 10:45 am.
Mohammed Sohail, Chief Executive of Topline Securities, attributed the bullish momentum to “positive sentiments continuing amid hope that the new budget will help secure a long-term IMF deal.”
Raza Jafri, Chief Executive of EFG Hermes Pakistan, noted, “The market is pricing in the favourable news over the Eid holidays, including Fitch’s dovish view on the inflation outlook and the proposed reduction in electricity tariffs for industries.”
“The bout of modest foreign selling pressure this month, possibly due to FTSE rebalancing, also appears to be largely behind us,” he added.
Yousuf M. Farooq, Director of Research at Chase Securities, highlighted that the upward trajectory was due to “declining fixed income yields, no additional capital gains and dividend taxes in the budget, rationalisation of energy tariffs, improving economic sentiment, and reduced uncertainty over the balance of payments situation.”
Farooq also emphasized that “comments from Fitch and Moody’s have all contributed to today’s market rally.”
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