Stocks got off to a flying start on Monday hitting an intraday high above 91,000 points in earnings season-fuelled trade, as investors are building their portfolios with high-value blue chips betting on hawkish central bank signals as it meets on November 4 to revise the key policy rate.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index surged 1,026 points to 91,020 points at 12:13am, up from the previous close of 89,993.96 points.
The market is abuzz with conjectures of a major loosening of the monetary policy stance on November 4, while lucrative corporate results are also spurring buying in sectors such as auto, cement, banking, energy, and power generation.
Commenting on the rally, Tahir Abbas, analyst at Arif Habib Limited (AHL) said: “The market is on a roll, driven by a combination of improved macroeconomic indicators, a stabilised exchange rate, and growing investor confidence following positive government policy initiatives.”
The recent easing of inflationary pressures and declining interest rates have also contributed to increased liquidity, encouraging investors to take fresh positions in equities, Abbas said.
