Bullish spree continues as PSX briefly touches 80,000 barrier

Bulls continued their stampede at the Pakistan Stock Exchange (PSX) on Friday as shares gained more than 1,200 points to briefly cross the 80,000 level — a day after it closed at a now-broken all-time high. The benchmark KSE-100 index gained 1238.54 points, or 1.57 per cent, to stand at 80,059.87 — a record high — from the previous close of 78,801.53 points at 9:47am. It, however, then receded to 78,847.57 at 11:36am — a gain of mere 46.04 points, or 0.06pc, from the previous close. Tahir Abbas, head of research at Arif Habib Limited, said, “The market continues its positive momentum as investors are optimistic about the new IMF programme, downward inflation, interest rates trajectory and flows converting from fixed income to equities.” Mohammed Sohail, chief executive of Topline Securities, noted that the index had reached “another record high”, climbing by 99pc in a year. He attributed today’s climb to “positive sentiments led by tax laden budget” which investors feel will help in getting the long-term International Monetary Fund (IMF) loan. “Investors are optimistic about the macroeconomic stability that will create a favorable environment for monetary easing,” Awais Ashraf, director research at AKD Securities, said, adding that this “subsequently reduces the required rate of return for investors in the equity market”. “Moreover, the scarcity of other profitable investment opportunities, particularly in real estate and commodities, is also driving the recent KSE-100 rally,” he added. On Thursday, analysts had attributed the post-Eid bullish momentum to the rating agencies’ recent outlook for Pakistan. Raza Jafri, chief executive of EFG Hermes Pakistan, had highlighted Fitch’s “dovish view on inflation outlook and the proposed reduction in electricity tariffs for industries”. Yousuf M Farooq, director of research at Chase Securities, had also mentioned that “comments from Fitch and Moody’s have all contributed to” yesterday’s market rally.