Analyst says the rupee\u2019s steep fall has triggered a positive sentiment at PSX
\n ISLAMABAD
\nShares at the Pakistan Stock Exchange (PSX) continued to rally on Thursday, with the benchmark index crossing the key 40,000 points mark.
\nThe KSE-100 index jumped 1020.82 points, or 2.57 per cent, to reach 40,805.72 points at 1:17pm.
\n\u201cStocks showed strong recovery in the earnings season on institutional interest in scrips across the board after the government\u2019s decision to make tough decisions to seek IMF (International Monetary Fund) programme revival,\u201d said Arif Habib Corporation\u2019s Ahsan Mehanti.
\nHe added that investor speculation over likely help from the United States to revive the programme as well as financial support from the United Arab Emirates and Saudi Arabia played a catalyst role in the bullish activity.
\nDalal Securities CEO Siddique Dalal said it was evident the government had begun implementing the IMF\u2019s conditions for the revival of the loan programme. He was referring to the steep depreciation of the rupee in the interbank and open markets today after an unofficial cap of the USD-PKR exchange rate was removed.
\n\u201cTaxes will be imposed [through a mini-budget] and inflation will rise \u2026 but the IMF programme revival will unlock inflows from other multilateral lenders,\u201d Dalal said, adding that the oil and banking sectors were driving the rally.
\n\u201cThe KSE-100 has continued its upward momentum, pulled higher by refineries on news that the refinery policy has been finalised. Value buying is also being seen in the banking and cement sectors,\u201d said Intermarket Securities\u2019 Head of Equity Raza Jafri.
\nFirst National Equities Limited Director Amir Shehzad also shared Jafri\u2019s view, saying the market rose on expectations that the finalised refinery policy would be approved.
\nHe further said the cement and steel sectors were rallying on expectations of a large increase in the development allocation in the upcoming mini-budget. \u201cIt is assumed that political uncertainty will be controlled due to which the market is rising,\u201d he added.
\nThe KSE-100 index had shed nearly 2,000 points in the previous week on political instability after Punjab and Khyber Pakhtunkhwa assemblies were dissolved. However, bulls regained control this week on a lower-than-expected increase in the interest rate and expectations that the International Monetary Fund (IMF) programme would be resumed soon.<\/p>\n","protected":false},"excerpt":{"rendered":"
Analyst says the rupee\u2019s steep fall has triggered a positive sentiment at PSX ISLAMABAD Shares at the Pakistan Stock Exchange (PSX) continued to rally on Thursday, with the benchmark index crossing the key 40,000 points mark. The KSE-100 index jumped 1020.82 points, or 2.57 per cent, to reach 40,805.72 points at 1:17pm. \u201cStocks showed strong […]<\/p>\n","protected":false},"author":2,"featured_media":303623,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[325,205,878],"class_list":["post-309997","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-kse","tag-psx","tag-stock"],"yoast_head":"\n