Share prices at Pakistan Stock Exchange (PSX) soared to an all-time high on Friday as robust foreign inflows and improving macro-economic indicators boosted the sentiment. The benchmark KSE-100 index smashed through the 82,000 barrier climbing by 803.77 points or 0.98 percent to 82,263.05 points as compared to previous day’s close of 81,459.28 points. The sharp reduction in the interest rates amid receding inflation has changed the scenario. The government rejected all bids for treasury bills auction on Wednesday, indicating to the financial market that the government was trying to reduce the cost of borrowing, which eats up the entire tax revenue collection in servicing its massive debt.

On Thursday, the PSX’s benchmark index had increased by nearly 1,000 points, which experts had attributed to the US Federal Reserve’s rate cut, the upcoming International Monetary Fund (IMF) Executive Board meeting scheduled for September 25th, and falling inflation numbers. The benchmark KSE-100 index gained 1.1% on Thursday to close just shy of the previous record of 81,865.10, after touching a new high earlier in the day. The gauge has risen more than 30% this year, aided by foreign investors’ net purchases of $87 million in local shares, the highest since 2014, data compiled by Bloomberg showed.

Credit: Independent News Pakistan