PSX rises more than 390 points as fuel prices decline
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) increased by more than 394 points during Monday’s trading, which analysts ascribed to what appeared to be a better economic outlook.
The government announced a decrease in fuel prices, cutting the cost of gasoline and high-speed diesel by Rs. 8 per litre and Rs. 11 per litre, respectively, for the upcoming two weeks.
It also comes after the Pakistani rupee’s several-week surge. Data from the Forex Association of Pakistan show that during morning trade, it increased by Rs1.06 to reach 286.68 versus the dollar.
When trading ended, the index stood at 46,627.08, an increase of 0.85 percent. At 11:15 am, it had increased by 472.04 points from the previous closing of 46,232.59 points to a high of 46,704.63 points.
“The KSE-100 is reacting positively as it becomes clear that there will be a continued focus on the economy from all key stakeholders,” said Raza Jafri, head of equity at Intermarket Securities. It will be interesting to watch the CPI [consumer price index] print for September, which is out later today, as it’s possible the market decides to disregard a likely high reading in favor of a better outlook.
According to JS Global Capital’s head of equities sales, Syed Faran Rizvi, “the equity market’s positive momentum has been sustained due to reduced POL product costs and the strengthening of the PKR.”
“Investor sentiment going forward will likely depend on the IMF review and actions taken in the energy sector,” he continued.
The IMF review meetings this month for the release of the next tranche and a “upbeat growth outlook” were underlined as the primary bull market drivers by Ahsan Mehanti, chief executive of Arif Habib Commodities.
The rupee recovery, government discussions regarding the privatization of SOEs, and positive data on crop output, cotton production, power generation, fertilizer, automobiles, POL, and cement sales in September ’23 all played a catalytic role in the optimistic , he continued.
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