Following three consecutive sessions of subdued performance, bullish sentiment returned to the Pakistan Stock Exchange (PSX) as shares surged by over 800 points during intraday trade.
The benchmark KSE-100 index witnessed a notable gain of 831.65 points, or 1.18%, reaching 71,489.29 points at 11:35 am, marking a significant rise from the previous close of 70,657.64.
Experts noted that the market is regaining momentum after experiencing a 3% correction over the last three days based on optimism regarding the prospects of the new International Monetary Fund (IMF) programme and the forthcoming investor-friendly budget.
A spokesperson from the US Department expressed robust support for Pakistan’s economic efforts, particularly its collaboration with the IMF, dismissing concerns about fund usage for Pakistan’s missile program.
Experts also attributed the market rally to increased foreign buying, as evidenced by national clearing statistics.
They linked the bullish momentum to news of a Saudi delegation’s visit to Pakistan. They also noted that lower inflation figures contributed to an improved market sentiment following recent corrections.
Recent data from the Pakistan Bureau of Statistics (PBS) revealed a slowdown in consumer price inflation to 17.3% in April, further supporting the positive market sentiment that highlights fresh buying activities after recent profit-taking at PSX. They emphasized that optimism from upcoming visits by Saudi investors and the IMF team, combined with easing inflationary pressures, propelled the bullish momentum at the exchange.
