According to analysts, the Pakistan Stock Exchange (PSX) surged by over 700 points, reaching a new peak on Monday, as it sidestepped early predictions of a technical correction. The benchmark KSE-100 index escalated by 729 points, marking an intra-day high of 94,020, up from its prior close of 93,291.68 points.
Raza Jafri, CEO of EFG Hermes Pakistan, highlighted the significant role of the energy sector in propelling the index and a noticeable rise in some previously lagging high-beta stocks. “The market is currently overcoming early predictions of a technical adjustment, although such a correction remains plausible due to the index’s swift rise this quarter,” he noted.
Market analysts attribute the recent positive trend to several favourable macroeconomic developments. These include a substantial 250 basis point cut in the policy rate by the State Bank of Pakistan, now at 15%. Moreover, remittances to Pakistan soared to $3.1 billion in October 2024, bolstering the national economy.
Pakistan’s presence in the MSCI index expanded to 4.4% in the latest quarterly update, making it the second-most liquid market in the MSCI Frontier Markets category. However, Intermarket Securities Limited pointed out that this week’s meeting with the International Monetary Fund (IMF) mission will be the key monitoring event.
