The Pakistan Stock Exchange (PSX) has crossed the 90,000-point psychological barrier by positive economic indicators that are boosting investor confidence. The PSX's benchmark KSE-100 index surged by 1,100.32 points to jump to 90,046.3 points during the intrday trade, up from yesterday's close of 88,945.98 points. Arif Habib Limited's Head of Research Tahir Abbas told Geo.tv that the overall momentum of the market is positive. "If you look at the economic indicators, including the numbers of remittance and current accounts, they are on a positive trend, so the market has a positive effect," the analyst said. Secondly, he noted, the interest rate is declining and inflation is on a downward trajectory.

The upcoming monetary policy meeting, Abbas added, is also expected to cut the interest rate by 2%-2.5%. The most important thing is despite the fact that the market has rallied a lot, it’s valuation is very attractive and cheap. "Our average has been six times. The flow of liquidity in the market is a lot and since there aren’t favourable returns in fixed income and market’s evaluation is attractive, so people are moving towards equities, which is why there is value buying in the market," he added. This a developing story and is being updated with more details.

Credit: Independent News Pakistan