Friday, the capital market continued its bullish momentum while investors reacted positively to the strong expectations of business profits and stabilize macroeconomic indicators.
The market has opened on a solid note, with aggressive purchases pushing the higher index throughout the session.
The KSE-100 index of the Pakistan Stock Exchange (PSX) climbed 1,864.76 points, or 1.65%, at the start of trade, reaching an intra-day summit of 115,071.16, reflecting the supported confidence of investors , while the lowest level was recorded at 113,692.87.
Market analysts have allocated the rally to optimism surrounding the next financial profits reports, which should indicate high profitability in various sectors. Investors also took positions in the middle of the expectations of continuous monetary easing by the State Bank of Pakistan (SBP) following recent policy rate drops.
Despite solid market performance, concerns about Pakistan exchange reserves have persisted. The State Bank of Pakistan (SBP) said a drop of $ 76 million in reserves, bringing the total to $ 11.372 billion on January 24. .
Total exchange reserves dropped $ 137 million to 16.052 billion dollars, while reserves held by commercial banks decreased by $ 61 million, regulating $ 4.68 billion. The drop in reserves highlights the current external financing challenges, financial entries do not compensate for the debt service obligations.
The strong momentum seen on Friday followed a major rebound during the previous session, where the KSE-100 index displayed a gain of 1,719.04 points (1.54%), closing at 113,206.40 compared to 111,487.36 of the previous session. The market remained volatile, reaching an intrajournual summit of 113,400.57 while receiving a minimum of 111,805.66.
For the future, analysts anticipate continuous volatility, investors are closely looking at business benefits and the main macroeconomic developments.