The Pakistan Stock Exchange (PSX) opened the week with a strong bullish trend, surpassing the 62,000 milestone during Monday’s intraday trading.
The benchmark KSE-100 index experienced a notable increase, climbing by 701.86 points or 1.14% to reach 62,393.11 points by 10:24 am. This surge reflects a positive market sentiment and investor confidence.
Despite November’s Consumer Price Index (CPI) indicating high inflation, market participants are anticipating a potential rate cut in the upcoming Monetary Policy Committee’s (MPC) meeting. Additionally, low-priced energy stocks are drawing interest amidst expectations of improvements in circular debt management. There is a growing belief that capital might shift from fixed income to equities.
Recent Market Performance
The PSX ended the previous week on a high note, with the KSE-100 index reaching an all-time high on Friday. This achievement was propelled by a surge in foreign portfolio investment and encouraging economic indicators, including a strengthened rupee following the rollover of a $3 billion deposit by Saudi Arabia.
The KSE-100 index’s significant gain of 1,160 points (1.92%) to close at 61,691 points was influenced by several factors. The stability of the rupee, strong economic data, and a surge in foreign portfolio investment played key roles. Reports of a $30 million net Foreign Institutional Portfolio Investment (FIPI), the highest in over six years, during November 2023, and government discussions on privatizing struggling State-Owned Enterprises (SOEs) also contributed to the market’s record close.
