KARACHI – Bulls on Tuesday held their ground at the Pakistan Stock Exchange (PSX) as shares surged by over 600 points in intraday trade.
The KSE-100 index witnessed a gain of 680.68 points, or 1.05 percent, reaching 65,571.18 points at 12:55pm from the previous close of 64,890.50.
Ultimately, the index concluded at 65,502.59, marking an increase of 612.09 points from the previous close.
Yousuf M. Farooq, director of research at Chase Securities, highlighted the central bank's conservative stance in maintaining interest rates amidst rising inflation expectations. He also mentioned the potential impact of adjustments in administrated energy prices on inflation.
Faran Rizvi, head of equity sales at JS Global, noted that the current market situation suggests a period of consolidation within the 63,500 to 66,000 range. Despite short-term fluctuations, Rizvi expressed a bullish outlook, citing the resolution of political uncertainties and promising inflation figures as positive indicators for the economy. He advised investors to consider allocating their portfolios towards oil and gas sectors and banking stocks.
The State Bank of Pakistan's Monetary Policy Committee maintained the interest rate at 22 percent this week, emphasizing the need for a cautious approach to address high inflation. Farooq observed a decrease in political risks with the new finance ministry team dedicated to fulfilling IMF program obligations and pursuing long-term objectives.