Business News Desk -India’s market continues to decline but Pakistan’s stock market has broken all records. Pakistan Stock Exchange (PSX) reached a new record of 84,000 on Monday. The PSX benchmark KSE-100 index rose 1.67 percent to 84,984.13, compared with the previous close of 83,531.95. According to Pakistani media reports, traders say that the stock market crossed the level of 84,500 on Monday, mainly due to the boom in the energy sector, as investors expect that the Central Bank will once again reduce the interest rate in its next monetary policy meeting. Ready to cut rates.
What is the reason for the rise?
Stocks have hit all-time highs, led by blue chip oil stocks amid earnings season speculation, experts say. The rise in global crude oil prices, fall in banking lending rates and government deliberations on privatization of government companies have played a catalyst role in the rise in PSX. Sectors that witnessed growth included automobile assemblers, cement, commercial banks, fertilizers, oil and gas exploration companies and oil marketing companies (OMCs).
decline in inflation
Rising expectations of interest rate cuts are the first reason, according to analysts, who cited a persistent decline in consumer price index (CPI) inflation, which reached single digits at 6.9% in September. “The fall in yields has increased interest in the stock market, as lower fixed income has prompted investors to seek higher yields in equities,” Yousuf M Farooq, director of research at Chase Securities, told Pakistani news website Down.
