Shares at PSX gain over 450 points over ‘improving outlook’ of economy

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index gained over 370 points during morning trade on Monday, which analysts attributed to an improved outlook in the economy.

The optimism in the market came as the government announced a reduction in fuel prices, slashing the prices of petrol and high-speed diesel by Rs8 per litre and Rs11 per litre, respectively, for the next fortnight.

It also follows a weeks-long rally of the Pakistani rupee.

The index reached 46,683.13 points at 12:20pm, a rapid climb up by 450.54 points or 0.97 per cent from the previous close of 46,232.59 points.

Intermarket Securities’ Head of Equity Raza Jafri said, “The KSE100 is reacting positively as it becomes clear that there will continue to be focus on the economy from all key stakeholders. The CPI print for September, due later today, will be interesting to monitor as it is possible the market chooses to ignore a likely high reading in favour of an improving outlook.”

Syed Faran Rizvi, head of equity sales at JS Global Capital said, “The equity market’s positive momentum has been sustained due to reduced POL product costs and the strengthening of the PKR.”

He added, “Looking ahead, investor sentiment will likely hinge on the IMF review and actions taken in the energy sector.”

Ahsan Mehanti, CEO of Arif Habib Commodities, noted main bull market drivers to be the IMF review meetings this month for the next tranche release and an “upbeat growth outlook.”

Furthermore, he added, “Upbeat data on crop output, cotton production, power generation, fertiliser, autos, POL and cement sales in September’23, rupee recovery and government deliberations on privatisation of SOEs played a catalyst role in bullish activity.”

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