Karachi: Experts say that the reason for the historic bullish trend in the stock exchange is political stability, resolution of IPPs agreements, stable foreign exchange reserves, increase in remittances and reduction in interest rates, which are attracting investors to invest.
Arif Habib Corporation analyst Ehsan Mehndi said in this regard that the reduction in interest rates has had a positive impact on the stock market, political stability, resolution of IPPs agreements, improvement in economic indicators of balance of trade, stability in foreign exchange reserves, and remittances have played an important role in bringing a record bullish trend in the stock market.
As a result, the KSC 100 Index reached a level of 116,169.41 on Monday with an increase of 1,867.61 points.
Topline Securities said in its market review that investors were waiting for the monetary policy, and they expected a big cut in interest rates, which attracted investors to invest in the stock market.
Topline explained that the increase in the index was mainly due to the strong performance of Mari Petroleum, Fauji Fertilizer, Pakistan Petroleum Limited, Oil and Gas Development Company, and The Hub Power Company, which contributed a total of 1,749 points to the index.
JS Global analyst Muhammad Hassan Athar said that investors were expecting a big cut in the policy rate, due to which the stock market saw a boom, with prominent sectors such as autos, E&P and refineries seeing a huge increase in buying.
He expected the continuation of the interest rate cut, which will result in a continuation of the boom in the stock market.
