The stock market staged a handsome rally on Wednesday and skyrocketed over 1,000 points in intra-day trading owing to bullish activity in global markets coupled with positive growth forecast of Pakistan by the International Monetary Fund (IMF).
Earlier this week, the IMF projected Pakistan’s economy to grow at 4% during the ongoing fiscal year 2021-22 and also endorsed last fiscal year’s economic growth estimates of 3.9%.
At 2:51 PM, the KSE-100 index was trading at 44,276.43 points after a surge of 1,054.65 points of 2.44%.
Speaking to The Express Tribune, Arif Habib Corporation Managing Director and CEO Ahsan Mehanti said that optimistic growth projections by IMF rejuvenated investor interest at the bourse and triggered a rally.
“Moreover, the jump in international oil price to near all time high and uptrend in global stock markets also fuelled bullish trading at the local bourse,” he said. “In addition, foreign inflows have started entering Pakistan once again.”
Mehanti said that foreign inflows had declined over the past few days.
AA Gold Commodities Director Adnan Agar said that the news of Pakistan paying back $1 billion foreign debt was hailed by investors and aided the uptrend.
“Pakistan’s capacity to make such a huge payment in a timely manner was cherished by the market participants and it acted as a positive trigger,” he said.
Furthermore, the market had fallen drastically over the past few days and a recovery was expected sooner or later, the analyst said.