The Pakistan Stock Exchange (PSX) reached a new milestone on Wednesday morning, surpassing the 72,000 mark.
In early trading, the KSE-100 index saw a significant rise, gaining 976.49 points or 1.37%, to settle at 72,335.89 points from the previous close of 71,359.41 points.
Raza Jafferi, CEO of EFG Hermes Pakistan, explained the surge, attributing it to positive shifts in economic indicators such as foreign exchange reserves and inflation. These factors are fostering expectations of monetary easing.
Jafferi noted, “This optimism acts as a major catalyst for equities, with increased interest in highly leveraged sectors like cement and textiles fueling this phase of the rally.”
Muhammad Sohail, CEO of Topline Securities, highlighted another record set by the KSE-100 index. He mentioned an anticipated decrease in consumer inflation following a record current account surplus. “Investors are predicting a drop in interest rates in the upcoming months,” Sohail added.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, pointed out that stable macroeconomic indicators, expectations of interest rate cuts, and the prospect of a new IMF program are key drivers of the current market uptrend.
The KSE 100-share index closed by 74.06 points or 0.10% at 71,359.41 points. Ahsan Mehanti, an analyst at Arif Habib, observed, “The market faced pressure amid higher trading volumes, influenced by declining global crude oil prices, refinery shutdown reports, and anticipations of a cautious policy announcement by the State Bank of Pakistan (SBP) ahead of new IMF loan discussions next month.”
He further mentioned factors such as Shanghai Electric Power’s retraction of its KE acquisition offer, uncertainties over Pakistan-US relations concerning Pakistan-Iran trade agreements, and a weakening rupee contributing to the market’s negative close.
