ISLAMABAD: After setting the historic high for a number of time and crossing the 58000 benchmark, the Pakistan Stock Exchange (PSX) on Thursday, further continued the bullish trend as the 100 Index gained further 701 points to reach near another historic high of 59000 points. At close the market settled at 58900 with a positive change of 1.22 percent.
Last day the market closed at 58,198.76 where the index crossed 58000 benchmark for the first time in history.
Meanwhile on Thursday, the market showed further momentum where buying was witnessed across the board including the heavy sectors including automobiles, commercial banks, cement, chemical, fertilizer, oil and gas exploration companies etc and almost all of these sectors remained in the green zone.
Bullish Trend at PSX
During last couple of weeks the Pakistan Stock Exchange witnessed a remarkable bullish trend except a single bearish trend last Friday (due to profit taking). Last Thursday, the 100 Index crossed the 57,000 level for the first time in history, followed by another milestone last day when the index crossed 58000 mark for the first time. On this Thursday the index gained further momentum and now approaching towards 59000 benchmark.
During the day most of the time, buying was witnessed particularly in the heavy sectors including automobiles, cement, chemicals, banking sector, oil and gas, fertilizers etc.
According to the experts the recent upward and positive sentiments in the market were due to the recent agreement between Pakistan and the International Monetary Fund (IMF) to reach a staff-level agreement on the first review for 9-month Stand-By Arrangement (SBA) of $3bn.
In addition the ongoing bullish trend occurred amid the country’s improved economic indicators and the interim government’s successful negotiations with the International Monetary Fund (IMF) for the first review, which will unlock $700 million in funding and which are expected in the first week of December.
Experts believe the market may face a decline in the coming days due to profit taking and the possible decline in the interest rate in the upcoming Monetary Policy Committee (MPC). However due to favourable condition the market could be expected to went up further.
