PSX turns bullish, gains more than 600 points

KARACHI – Shares at the Pakistan Stock Exchange (PSX) on Thursday rebounded, showing a gain of more than 600 points. 

The KSE-100 index, as reported by the PSX website, concluded at 64,617.56, reflecting an increase of 697.72 points or 1.09% from the previous closing at 63,919.84 points.

Raza Jafri, Head of Equities at Intermarket Securities, explained that the market responded positively to "encouraging data" involving robust remittances and lower T-bill auction yields. He highlighted the positive market sentiment driven by corporate events, such as Mari Petroleum's upper circuit hit following the announcement of a substantial gas discovery.

Jafri also noted the significance of the International Monetary Fund’s (IMF) executive board meeting for the first review of the country’s $3 billion program, scheduled for later in the day.

Yousuf M Farooq, Director of Research at Chase Securities, linked the upward trend to "expectations of a smooth conclusion to the IMF review." He pointed out the surge in bonds, with a notable decrease in the one-year bond yield, now standing at 20.85%. The anticipation of interest rate cuts, supported by controlled inflation and a stable current account, contributed to enhanced market confidence. However, Farooq cautioned about lingering election uncertainty impacting ongoing investor concerns.

Mohammed Sohail, Chief Executive of Topline Securities, credited the day's rally to falling T-bill yields, increasing the likelihood of future interest rate cuts.

The previous day witnessed bearish sentiments in the stock market for the fifth consecutive session, primarily due to pre-poll uncertainty, causing the benchmark KSE-100 index to dip below the 64,000-point level.