KARACHI: The stock market bounced back on Thursday and staged a handsome rally, taking cue from bullish activity in global markets and encouraging growth forecast for Pakistan by the International Monetary Fund (IMF).
With the revival of investor interest, the market skyrocketed over 1,100 points.
Earlier in the week, the IMF projected that Pakistan’s economy would grow 4% in current fiscal year 2021-22 and also endorsed previous fiscal year’s growth estimate of 3.9%.
Investors took cue from Pakistan’s timely repayment of $1 billion in debt, raised through Sukuk in 2016, and made fresh investment in the bourse.
They cherry-picked those stocks that had fallen to attractive valuations due to a prolonged bearish spell over the past few days.
Earlier, trading kicked off with minor ups and downs, but bulls took control of the market after a few minutes and with that the index began climbing at a steady pace. Strong investor sentiment helped accelerate the markets’ advance towards the end.
At close, the benchmark KSE-100 index recorded a surge of 1,111.9 points, or 2.57%, to settle at 44,333.68.
Speaking to The Express Tribune, Arif Habib Corporation Managing Director and CEO Ahsan Mehanti said that optimistic growth projections by the IMF rejuvenated investor interest in the bourse and triggered a rally.
“Moreover, the jump in international crude oil prices and the uptrend in global stock markets also fuelled bullish trading at the local bourse,” he said. “In addition, foreign fund inflows have resumed.”
Mehanti pointed out that foreign investment flows to Pakistan’s market had decelerated over the past few days. –Agencies
