Bulls continue stampede at PSX as shares surpass 98,000
Bullish momentum continued at the Pakistan Stock Exchange (PSX) on Monday as shares gained more than 600 points in intraday trade.
The benchmark KSE-100 index climbed 621.85 points, or 0.64 per cent, to stand at 98,420.08 from the previous close of 97,798.23 points at 12:45pm. Finally, the index closed at 98,079.78, up by 281.55 points, from the previous close.
Mohammed Sohail, chief executive of Topline Securities, said that that the market was rallying on “unconfirmed speculation” that the State Bank of Pakistan (SBP) “may give relaxation to banks on minimum deposit rates [MDR] for savers”.
While Yousuf M. Farooq, director research at Chase Securities, said, “A rally in banking stocks, driven by rumours of the removal of ADR [advance-to-deposit ratio] tax and changes in MDR , has led to strong market performance today, even as investors remain cautious in other sectors.”
“Bank Al Habib, Meezan Bank, Bank Alfalah, and MCB are leading the surge,” he observed, adding that this was due to “consistent fund inflows into the equity market, as individuals and institutions shift from fixed-income investments to equities amid declining yields”.
Farooq noted that despite jitters, the market appeared to have largely ignored political noise.
“We advise retail investors to focus on long-term investment strategies, avoiding short-term market movements,” he recommended. “A disciplined approach of saving and investing small amounts regularly in a diversified portfolio, while keeping liquidity needs in mind, remains a prudent strategy.”
Awais Ashraf, director research at AKD Securities, said, “Inflows from institutions, driven by declining fixed-income yields, have sustained the index’s upward momentum, offsetting the negative impact of the ongoing political situation.”
“Additionally, commercial banks expected to be exempt from ADR taxation have positively influenced today’s index performance,” he highlighted.