PSX scales above 90,000 points as rate cut nears
Business
Ongoing surge in the PSX is believed to be caused by multiple positive indicators
KARACHI (Dunya News) – The persistent upward movement of stocks continued in the Pakistan Stock Exchange (PSX) on Tuesday as the benchmark KSE-100 index scaled at 90,799 points after gaining more than 600 points in the early hours of trading in the stock market - higher than previous close of 90,195 points.
The ongoing surge in the PSX is believed to be caused by multiple positive indicators.
HOPES OF RATE CUTS IN NOV
The most important push in the PSX has been due to hopes of policy rate cuts in Nov which was also hinted at by Finance Minister Muhammad Aurangzeb a few days back.
Market experts believe that the interest rate would be brought down to 14pc by the end of this year as the European Central Bank (ECB) and US Federal Reserves are also decreasing interest rates to ease inflationary pressures.
SCO SUMMIT
Besides, arrival of global guests in Islamabad who had gathered to attend the Shanghai Corporation Organistaion (SCO) summit in the mid of this month also helped Pakistan send positive signal to the world that is a safe place for foreign investment.
IMF LOAN, SAUDI INVESTMENT PROSPECTS
In addition, the recent approval of another Extended Fund Facility (EFF) worth $7 billion by the International Monetary Fund (IMF) and interest shown by Saudi businessmen to invest in various sectors during their recent trip to Islamabad has boosted investors’ confidence.
Moreover, approval of a $3 billion from the Islamic Trade Financing Corporation (ITFC) for commodity financing for a period of three years has also proved instrumental in keeping the momentum high in the PSX.
