The Pakistan Stock Exchange (PSX) witnessed a remarkable surge on Monday, achieving a new milestone as the benchmark KSE-100 index surged past the 56,000-point mark during intraday trading. This significant increase, representing a gain of 618 points, was fueled by a combination of positive factors that contributed to the bullish sentiment in the market.
One key factor driving the market’s upward trajectory is the newfound clarity on the election date, providing investors with a sense of political stability. Additionally, optimistic expectations surrounding a favorable review from the International Monetary Fund (IMF) added to the positive sentiment.
As of 10 a.m on Monday, the PSX 100 index was trading at an impressive 56,010 points, signaling a robust start to the business week. The momentum had already been building on the previous Friday when the KSE-100 index crossed the 55,000 points mark.
Raza Jafri, the Head of Equity at Intermarket Securities, highlighted two critical factors contributing to the rally. Firstly, strong domestic institutional buying played a pivotal role, indicating confidence from within the country’s financial institutions. Secondly, a decrease in the yields of Pakistan Investment Bonds (PIBs) added to the positive market dynamics.
It’s noteworthy that the last time the index traded above 52,000 points was in 2017 during the tenure of the Pakistan Muslim League-Nawaz (PML-N). The recent surge in the stock market underscores positive sentiments among investors, reflecting confidence in both domestic economic conditions and the outlook for international financial support. The market’s response serves as an indicator of the potential for economic stability and growth in the region.
