The stock market kicked off with a bang on the first day of the new year as the benchmark KSE-100 index climbed more than 900 points during the morning session.
At around 11:30 am, the index, which closed at 43,755 on Dec 31, had risen 918 points to 44,673. Shares finished the year 2020 at a 30-month peak yesterday.
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While talking to Dawn.com, Deputy Head of Analysis at AKD Securities, Ali Asghar Poonwala, said the reason behind the new-year rally was an assumption that the power supply chain would increase liquidity.
It is primarily the grapevine market that shows increased liquidity in the power chain, with clearances higher than average in November and December.
In an otherwise ignored independent power producers (IPPs) and the state oil marketing firm PSO (Pakistan State Oil) that remained marred by circular debt-related dues, this sparked a bullish feeling.
He added that a potential government raise in the base commodity tariff, a key demand of the International Monetary Fund (IMF), would further boost liquidity.
The benchmark KSE-100 index gained 60.62 points on Thursday to close 2020 at 43,755, which was around the same as closing at the 30-month peak of 43,767 points seen on Dec 17. The index produced a return of seven percent on an annualised basis.