Islamabad: With the economy moving in the right direction due to rising inflation and ongoing reforms, the Pakistan Stock Exchange witnessed a historic rally last week and set new records.
Expectations of further interest rate cuts in the coming days from the auction of Pakistan Investment Bonds at low yield continued to influence capital market activities.
Sectoral investments increased due to dollar inflows and positive balance of payments in October. Despite capital withdrawal by foreigners during the weekly trading session, the bullish effects prevailed and the index reached 3 new historic levels of 95, 96 and 97 thousand points.
In the weekly trading, the value of shares increased by a record high of Rs 318 billion 533 million 36 thousand 974, which also increased the total market capitalization to Rs 125 trillion 25 billion 439 million 137 thousand 461.
In addition, despite the current account surplus and positive economic indicators, the value of the dollar remained strong in both foreign exchange markets last week with fluctuations, however, the dollar’s advance was limited due to increasing foreign exchange reserves and increasing inflows into the Roshan Digital Account.
During the weekly trading, the value of the dollar, riyal, and dirham increased in the interbank market, while the value of the pound and the euro decreased. In the open market, the value of the dollar, riyal, and dirham also increased, while the value of the pound and the euro decreased.
In a week, the difference between the interbank and open rates of the dollar increased to 1.02. The value of the dollar in the interbank market increased by 09 paise to Rs 277.75, while the value of the dollar in the open market increased by 12 paise to Rs 278.77.
