PSX climbs to year’s high
KARACHI
Bulls roared at the stock market on Thursday as the KSE-100 index soared over 1,000 points and passed the 42,000- point mark to trade at 14 month high. Traders are aggressively relocating investment to the stock market from the fixed income saving products. Last time, trading at this level was witnessed towards the end of 2018.
The KSE-100 index closed the previous year as one of the best-performing indices in the region with a 10% return. This news particularly bolstered investor sentiments and sparked a rally on the very first trading session of the year and continued for the second day as well.
Moreover, the inflation reading for the month of December was largely in line with market expectations hence the mood at the bourse remained unchanged during the day. Inflation clocked in at 12.63% in December 2019 against the market expectations of 12.8-13%.
There is a strong rumour in the market the Central Directorate of National Savings is set to announce a significant cut in rate of return on investment in national savings products today, Arif Habib Limited Head of Equity Sales Saad Bin Ahmed said.
This (rate cut for national saving products) is a very positive trigger for buying at the stock market, he said. Secondly, institutional investors, mostly the banks, are apparently making new year buying, he said.
Banks were significant buyers on Wednesday and they are expected to repeat the feat today as well, he said. Banks stood liquidated by towards the end of December.
They are making substantial buying at every point in time,” he said. “On the other hand, foreigners are also buying stocks. At 2:21 PM, the KSE-100 index was trading at 42,518.88 points after a gain of 1,118.88 points of 2.63%.
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