KARACHI: With some changes, the smooth passage of Finance Bill 202627 and easing geopolitical tensions revived buying interest across-the-board in the final session of the short week due to Ashura holidays, snapping a three-session losing streak on Wednesday.
Key changes to the bill include the removal of duties on mineral water and hydration drinks, a sales tax exemption for local airlines importing or leasing aircraft, and an amended duty structure for electric cars and SUVs imported into the country.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said PSX witnessed strong buying interest, with the KSE-100 Index gaining 1,878 points, or 1.06 per cent, to close at 179,571.
Broad-based buyingemerged across the market as investors positioned for further positive developments on the geopolitical front, expectations ofanother cut in domestic petroleum prices, and growing hopes for monetary easing.
Sentiment was furthersupported by the decline in T-bill yields at the auction, signalling the possibility of an interest rate cut in the upcoming SBP’sMonetary Policy Committee’s meeting on July 27, amid falling global oil prices and a softening inflation outlook.On the index contribution front, United Bank, Lucky Cement, Service Industries, Pakistan Petroleum, Fauji Fertiliser, MCB Bank, Interloop Ltd, Engro Holdings, Maple Leaf Cement Factory and Chera Cement Company collectively added 1,175 points to the benchmark index.
Market activity remained healthy, with traded volume up 11.26pc to 851 million shares and traded value up13.93pe to R40.3bn. K-Electric led the volume chart with 83.4m shares traded.
Analysts believe that with oil prices declining and expectations ofpolicy rate cut growing, investor sentiment is poised to stay optimistic. Nonetheless, the longevity of this rally will hinge on upcoming inflation reports, SBP policy indications, and ongoing improvements in geopolitical situations.