On Monday, bullish activity propelled the Pakistan Stock Exchange (PSX) past a significant threshold, with the KSE-100 index surpassing the 74,000 mark.
During intraday trading, the benchmark index soared to 74,086.54 points, gaining 1,001.04 points or 1.37% over the previous session’s close of 73,085.50 points.
Raza Jafri, CEO of EFG Hermes Pakistan, expressed optimism about the market. He anticipates a potential interest rate cut in the next monetary policy announcement on June 10 and holds a positive outlook for the rupee.
Jafri noted, “This optimism drives interest in previously lagging sectors like cement, steel, and pharmaceuticals, contributing to the market rally.”
Additionally, Muhammad Saad Ali, CFA and Director of Research at Intermarket Securities, highlighted that the recent positive review from the International Monetary Fund (IMF) has bolstered market confidence. Ali said the IMF praised Pakistan’s strides towards enhanced macroeconomic stability.
The positive market trend continues from last week when the KSE-100 closed above 73,000 for the first time, buoyed by strong remittance data and decreasing inflation rates. On Friday, the PSX closed at 73,085.50 points, up by 427.45 points or 0.59%.
Ahsan Mehanti, an analyst at Arif Habib, commented on the market’s performance, “Stocks reached an all-time high during the pre-budget rally at the PSX, following a 28% year-on-year surge in April remittances to $2.81 billion.”
