The Pakistan Stock Exchange (PSX) saw bulls maintaining dominance on the trading floor as they crossed the 63,000 milestone on Wednesday. According to the PSX website, the KSE-100 index reached 63,299.97 points at 10am, up by 343.95 from the previous day’s close. It then increased by another 154 points to reach 63,454.50 by the afternoon, a 0.79% increase from the previous day’s close. The trade volume also saw a cumulative increase of 498.48 points by 11:58am.
The benchmark of representative shares has been on a record-breaking streak in recent days, and analysts predict that this bullish momentum will continue into 2024 due to optimistic expectations of an improved economic landscape. There is also speculation about a likely reduction in the benchmark interest rate, currently at 22%, in the upcoming meeting of the Monetary Policy Committee (MPC) of the State Bank of Pakistan.
Sana Tawkfik, deputy head of research at Arif Habib Limited, attributed the day’s rally to a spike in foreign buying and noted that the year-on-year decline in trade deficit by 32% in November was a positive development for investors looking for signs of an improving economic outlook.