Stocks rally by more than 500 points during intra day trade
The Pakistan Stock Exchange’s benchmark KSE-100 index started early morning trade in the green on Wednesday, gaining more than 300 points.
At 12:22pm, the index extended its gains by 504.18 points, or 0.97 per cent, crossing yet another psychological barrier of 52,000 after six years.
Yesterday, share prices had risen on the maintenance of the monetary policy status quo announced on Monday. The State Bank of Pakistan (SBP) sustained its policy rate of 22pc to contain inflation which was at par with most analysts’ expectations.
Raza Jafri, head of Intermarket Securities, stated laser-sharp focus on the economy, prospects of monetary easing going forward, and optimism about successfully navigating the IMF review to be supporting factors of the rally.
“The KSE-100 had a very strong October (+15% in USD) and looks good to extend its rally.”
However, he added, “Despite the rally, valuations are still 50% lower than the long-term mean.”
So far, major activity is reported in stocks such Worldcall Telecom Limited, Cnergyico PK Limited, Pakistan Refinery Limited, Pak Elektron Limited and Oil & Gas Development Company Limited.
The top advancers include Premier Insurance Limited, Ghazi Fabrics International Limited, Dandot Cement Company Limited and Unicap Modaraba.
More to follow