- The KSE-100 index is recovered, closes 114,037.79.
- The reference index gains 594 points, or 0.52%.
- INTRADY ALCIANCE OF 114,319.62, minimum of 113,234.31.
The stock market saw an increase on Thursday, promoted by a renewed purchase interest in the cement sector and the expectations of a greater cutting of interest rates in the next meeting of the Monetary Policy Committee (MPC).
The KSE-100 index of the Stock Exchange of the Pakistan Stock Exchange (PSX) won 594.36 points, or 0.52%, to close at 114,037.79, recovering from the losses of the previous session. During the session, the index reached an intradic maximum of 114,319.62 and fell to a minimum of 113,234.31.
“The impulse is promoted by the cement sector, partly due to the expectations of another reduction in the interest rate in the next MPC,” said Muhammad Saad Ali, director of Research at Intemarket Securities LTD.
“The treasure of the treasure (T-Factures) of yesterday reinforced the hopes of at least one cut of 100 base points,” he added.
The yields in the tacules fted in the auction of Wednesday, further feeding the expectations of monetary flexibility. The Government raised RS326 billion, at the end of the objective of RS350 billion, and the yields decreased by 20-41 basic points in different tenors. The yields are now at 11.58% for the three -month, 11.4% article for six months and 11.38% for 12 months.
The auction saw an important interest of investors, with a participation reaching RS1.4 billion against maturities worth RS515 billion. Analysts believe that this reinforces the anticipation of the market of a 100 BPS cut during the January 27 policy review of the State Bank of the Pakistan Bank (SBP), as inflation continues to decrease.
Pakistan’s consumer (CPI) price index is expected to decrease to 2.8%, its lowest level since November 2015, despite an increase month to month of 0.6%.
It is projected that the average inflation rate for the first seven months of fiscal year 2000 will be 6.7%, significantly lower than the average of 28.7% during the same period last year. This trend supports the case of additional monetary flexibility, which could provide an additional stimulus to the sharing market.
On Monday, the National Assembly was informed about government plans to address structural inefficiencies in the fiscal system, address the undocumented economy and expand the tax base.
The Minister of State for Finance, Ali Pervaiz Malik, emphasized that the reforms are a key priority, with Prime Minister Shehbaz Sharif approved a transformation plan for the Federal Income Board (FBR). These reforms aim to improve tax compliance and improve income collection mechanisms.
The PSX closed very low on Wednesday, since concerns about the draft amendment of tax laws 2024 continued to weigh on the feeling of investors. The legislation, which prohibits non -filtering to trade beyond the specified limits, has caused apprehension among market participants.
The KSE-00 index fell by 1,598,82 points, or 1.39%, to close to 113,443.43. The index registered an intradic maximum of 115,256.16 and a minimum of 113,359.38.
As investors monitor the review of the monetary policy of January 27, it is likely that the impulse of the market depends on the SBP signals with respect to interest rates settings.
