The benchmark index of the Pakistan Stock Exchange (PSX) maintained its upward momentum on Friday and crossed the 65,000 milestone.
According to the PSX website, the KSE-100 index stood at 65,422.09 at 10am, up by 704.02 points, or 1.09 per cent, from the previous close of 64,718.07.
A day earlier, the shares market surged past the 64,000 level in what was the sixth consecutive day-on-day gain even though the benchmark of rep-representative shares exhibited some volatility.
Mohammed Sohail, chief executive of Karachi-based brokerage firm Topline Securities, attributed the run to declining oil prices and continuous foreign buying.
He noted that investors had a new-found confidence in the direction of economic policies and were taking advantage of low valuations as the market, even with its gains, was trading at a cheap price-to-earning ratio.
Meanwhile, Raza Jafri, head of equity at Intermarket Securities, told Dawn.com that the market was taking bad news — high Consumer Price Index print and delay in the International Monetary Fund board meeting — in its stride.
“Investors are rightly focusing on the cheap valuations, a reasonably settled top-down environment, and lots of room for institutional money to rotate into equities,” he said.
Jafri further warned that the sharp run up was also leading to enhanced volatility, opening up the possibility of large intraday swings.
More to follow
