The Pakistan Stock Exchange (PSX) has achieved a remarkable feat, hitting an Historic High during intraday trading as the KSE-100 index surpassed the 59,000 mark for the first time. This historic moment unfolded at 10:24 a.m., with the benchmark index reaching an impressive 59,397.44 points, showcasing a substantial 0.84% increase from the previous day’s closing at 58,899.84 points.
Several key factors have contributed to this significant surge in the stock market. Firstly, the government’s dedicated focus on the economy has played a pivotal role in instilling confidence among investors. Raza Jafri, Head of Equities at Intermarket Securities, attributes the market’s upward trend to this strategic economic focus and the effective management of risks.
Despite the rally, valuations remain appealing, and foreign buying has been identified as a primary driver of the increase. The infusion of foreign capital into the market has provided a significant boost to investor sentiment.
Capital market expert Saad Ali links this remarkable rally to a combination of factors, including interest rate cuts, low political risks in the lead-up to elections, and the smooth continuation of the IMF’s Stand-by Arrangement without additional tightening measures.
Analyst Ahsan Mehanti credits the surge to a strong economic outlook, a shrinking current account deficit, and the government’s proactive efforts to address issues such as power sector circular debt.
The bull run in equities, particularly the KSE-100 index, seems unstoppable, gaining more than 1% according to Topline Securities analyst Ali Najib. This sustained positive momentum is reflective of a broader economic landscape that is generating confidence among both local and foreign investors.
Several contributing factors have led to this record-breaking close. These include a surge in exports, a recovering rupee, projections of falling interest rates, and improved foreign exchange reserves following the disbursement of the next tranche from the International Monetary Fund (IMF).
