The Pakistan Stock Exchange made records in the business week that ended on November 24. On Friday, the 100-index of the Pakistan Stock Exchange (PSX) continued with a bullish trend and gained 186.51 points, a positive change of 0.32 percent. The index closed at 59,086.35 points.
Maintaining its bullish streak from the preceding week, the benchmark index hit yet another all-time high and crossed the 59,000 barrier a day earlier.
The inflow of dollars from the International Monetary Fund (IMF) expected next month supported the momentum along with upbeat economic indicators on the current account deficit and home remittances.
According to market experts, the market is behaving positively after a successful IMF review and with the government focused on the economy, interest rates were expected to decrease going forward.
The bull run in Pakistan equities can extend and potentially turn into a multi-year rally. For experts looking at the market, there are many different pieces of information that can impact the index in a single day let alone a month. When a period of 3 months has to be considered, it is vital to note that there are different developments on the macro level which seem to have triggered the recent PSX rally.
One of the biggest factors ailing the market and the corporate sector is the fact that interest rates are too high. Since the end of June 2023, interest rates were raised to 22 percent and there were no signs that the rates would be cut in the near future. The recent T-bill auction has been carried out at 300 basis points lower than the previous rates and there are expectations that the next monetary policy will see a decrease in the interest rates. This is a glimmer of hope that a change is on the cards.
The experts are hopeful that the market is expected to continue with its bullish-run in the next week and after the approval of the loan tranche, the confidence of the investors in the market will boost further.
