On Friday, the stock market soared past the significant milestone of 90,000 points, driven by encouraging economic news and hopes for a substantial cut in interest rates during the central bank’s upcoming meeting on November 4.
The Pakistan Stock Exchange’s benchmark index climbed by 1,100.32 points, reaching 90,046.3 during intraday trading, a rise from Thursday’s closing figure of 88,945.98.
Tahir Abbas, Head of Research at Arif Habib Limited, shared that the market’s momentum is robust. He highlighted that improving economic indicators, such as remittances and the current account balance, are positively influencing the market.
Abbas also mentioned that with inflation decreasing, a further interest rate reduction of 2% to 2.5% is anticipated in the upcoming monetary policy meeting. He pointed out that while stocks have been on an upward trend, they still appear undervalued, currently trading at a price-to-earnings ratio of 4.2, compared to the six-year average of around 6.
Furthermore, he noted a significant increase in liquidity in the stock market. As fixed-income investments fail to provide substantial returns, more investors are turning to stocks, leading to a rise in value purchases throughout the market.
