The Pakistan Stock Exchange (PSX) continued its positive momentum on Monday, building on gains from the previous week. The market was fueled by strong economic signals, including an improved inflation outlook and expectations of solid corporate earnings in the upcoming reporting season. Investors showed increased interest in value stocks, driving significant activity across the board.
The PSX’s benchmark KSE-100 Index saw a remarkable rise, gaining 1,860.12 points to reach a new intra-day high of 103,217.44. This marks a 1.84% increase from the previous close of 101,357.32, as the market continued to rally after surpassing the 100,000-point milestone last week.
Sana Tawfik, Head of Research at Arif Habib Limited, attributed this sustained momentum to improving macroeconomic conditions. “The positive trends we’ve seen since last week and earlier are still going strong. With inflation expected to drop to its lowest level since April 2018, around 4.7%, and better market liquidity, the stock market is gaining significant traction,” she explained.
Another factor contributing to investor confidence was the recent inflow of $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Program. This boost has helped Pakistan’s foreign exchange reserves climb to nearly $12 billion, reducing economic uncertainty and strengthening market sentiment.
The improved inflation outlook and enhanced liquidity are particularly encouraging for investors, as these factors create a more stable economic environment. Analysts believe that this combination of positive developments will likely result in stronger corporate earnings, further fueling market growth.
The stock market’s performance is seen as a reflection of renewed confidence in the country’s economic prospects. With solid foundations now in place, both domestic and foreign investors are optimistic about future opportunities in Pakistan’s capital markets.
