PSX crosses points 40,000 level first time in last 10 Months

KARACHI: The KSE-100 index has notched intraday record by gaining around 836.57 points so far to surpass 40,000 level since February 25, 2019.

In the last four consecutive days of positive closing, the index has accumulated gains of 2,339 points (6.2pc).

READ MORE: Meltdown on PSX: index plunges 936 points

The significant feature of trading on Monday was the thundering participation of investors as volume of shares traded stood at the tall order of 558 million shares – the highest in 30 months since May 24, 2017.

The rising market on back of massive volume was interpreted by observers as a sign of return of the buyers in droves,

Underpinned by continuing improvement in macroeconomic indicators where July-Nov FY20 exports jumped 4.8pc.

While imports declined 19.3pc, slashing the overall trade deficit by 34.4pc to $9.5 billion; improvement in remittances and growth in reserves.

READ ALSO: Bullish trend at PSX – Index gains 35,277 points

Investor interest was further fired by Moody’s affirmation of Pakistan’s outlook on local and foreign currency debt ratings at B3 and the change to stable from negative as the agency expects balance of payments dynamics to improve.

On Sunday, Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh said the recent strong performance of Pakistan’s stock market was proof of “increasing investor confidence on stabilisation measures” employed by the Pakistan Tehreek-e-Insaf (PTI)-led government.

In a tweet, the premier’s aide stated that the 14.9 per cent gain of the KSE-100 Index in November was the highest one-month return over the past six years.

“The KSE-100 index is up by 14.9% in November 2019, highest one month return after May 2013. Since 16 August 2019, the index increased by 36.6% (10,500 points),” said Mr Shaikh.

https://twitter.com/a_hafeezshaikh/status/1201059993329512449?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1201059993329512449&ref_url=https%3A%2F%2Fdunyanews.tv%2Fen%2FBusiness%2F521343-Bull-run-continues-as-stocks-jump-836.57-points

His comments came after the Pakistan Stock Exchange had a phenomenal rally in the outgoing week despite political uncertainty that jolted investors briefly.

According to updates till Friday, the benchmark KSE-100 index managed to sustain its winning streak for the fifth successive week as it advanced 1,362 points or 3.59 per cent and crossed.

READ MORE: PSX observes bearish trend as KSE-100 Index falls by 102 points

The 39,000 mark after eight months. It closed the week at 39,288 points.

“In November 2019, the KSE-100 index increased 5,084 points or 14.9pc month-on-month – this is the highest monthly return after May 2013,” said AHL Research in its report.