Pakistan’s stock market blasted off to yet another all-time high on Wednesday betting on upbeat economic indicators as a downtick in inflation stoked hopes of monetary loosening — a major stimulus to commercial activity, which is directly proportional to corporate profits.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index ended at 67,756.03 after jumping by a massive 869.77 points or 1.30%.
The cyclic sector stole the show on Wednesday as investors parked a lot of money in the cement and steel companies, mainly after reports of a rise in local and international cement dispatches for March.
Moreover, the government’s privatisation plans especially its initiative to sell off some State-Owned Enterprises (SOEs) fed the market with optimism as the consensus is that these companies would turn around in terms of profitability and efficiency under private ownership.
“Confidence (is) further improving after good progress on privatisation along with foreign portfolio investment in government papers,” said Mohammed Sohail, CEO of brokerage house Topline Securities, in a note during intra-day trading.
“Cements stocks are (also) in limelight amid expectations of rate cut in coming months,” he said.
