Bullish momentum continued at the Pakistan Stock Exchange (PSX) with the benchmark KSE-100 Index crossing the historic 90,000 level for the first time during the opening hours of intra-day trading on Friday.
At 12pm, the benchmark index was hovering at 90,100.05 level, an increase of 1,154.07 points or 1.3%. It hit a high of 90,180.51, now its record intra-day level.
Buying was witnessed in index-heavy stocks including automobile assemblers, commercial banks, fertilizer, oil and gas exploration companies and OMCs. Index-heavy stocks including OGDC, PPL, SSGC, NBP and MEBL traded in the green.
The stock market has been on an upward trend in recent weeks on account of improved economic indicators and expectations of a significant policy rate cut by the State Bank of Pakistan (SBP) in its upcoming Monetary Policy Committee (MPC) meeting, which is scheduled for November 4, 2024.
Analysts anticipate a potential interest rate cut of at least 200 basis points, driven by easing inflationary pressures.
CPI inflation reading clocked in at 6.9% in September 2024 and is anticipated to remain stable in October, within an estimated range of 6.5% to 7%.
On Thursday, bulls dominated the PSX as the market hit its then-highest-ever levels on the back of aggressive buying, mainly by local investors coupled with institutional support. The benchmark index surged by 1,751.45 points or 2.01% and closed at an all-time highest level of 88,945.99 points.
Globally, China stocks opened flat on Friday and were set to rise slightly for the week, as investors await details of Beijing’s fiscal stimulus and next month’s US election results.
China’s blue-chip CSI300 Index and the Shanghai Composite Index were little changed at the open.
Meanwhile, Japan’s Nikkei share average was set to mark a second week of declines on Friday as investors weighed the risk outlooks ahead of a domestic election that could see the ruling party lose its majority.
The Nikkei fell nearly 1% to 37,771.79 by the midday break, putting the benchmark index on track for a 3% loss for the week.
The broader Topix was also down 1% at 2,609.83.
This is an intra-day update
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