Bulls dominate PSX as KSE-100 gains over 800 points amid rate cut expectations

Uptick follows a period of modest gains linked to a lower-than-projected inflation rate of 22 months

The Pakistan Stock Exchange (PSX) experienced an upward trajectory on Wednesday, as the benchmark KSE-100 index climbed by over 800 points, or 1.3%, mainly due to positive sentiment developed by progress on privatisation along with foreign portfolio investment in government papers.

According to the PSX website, the cement and steel sectors led the bulls’ movement backed by transport, technology and communication, and commercial banking sectors.

The benchmark index gained 869.77 points or 1.3% to close at 67,756.03 level. This surge also follows a period of modest gains linked to a lower-than-projected inflation rate of 22 months, prompting expectations of a potential rate cut in coming months.

Market analysts highlighted market optimism, particularly with the progress on the privatization efforts for Pakistan International Airlines (PIA) and the influx of foreign portfolio investment.

Some experts have recognised the impact of improved cement sales figures and foreign investments in rupee-denominated government papers on market dynamics.

Profit reported on Tuesday that cement despatches increased by 3.85% to 3.941 million tons in March 2024 against 3.795 Million tons despatched during the same month of last fiscal year.

Cement exports also increased by 38.02% as the volumes increased from 438,433 tons in March 2023 to 605,142 tons in March 2024.

The overall market optimism is further supported by structural reforms and privatization efforts, indicating a positive outlook for Pakistan’s economic environment and investor confidence.

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