In a notable rally, the Pakistan Stock Exchange (PSX) saw its benchmark KSE-100 index soar over 800 points, crossing the 91,000 milestone during intraday trading on Tuesday.
The KSE-100 index climbed by 819.09 points, or 0.91%, reaching 91,014.60 points from the previous close of 90,195.51 at 11:25 AM. Experts attribute this surge to a combination of positive economic indicators and growing investor confidence.
Key Factors Driving the Market
- Improved Economic Indicators: Tahir Abbas, director of equities at Arif Habib Limited, noted that a stabilizing exchange rate and encouraging government policies have bolstered investor sentiment.
- Easing Inflation and Interest Rates: Declining inflation and interest rates have increased liquidity in the market, prompting investors to explore fresh equity opportunities.
- Inflow from Mutual Funds: Yousuf M. Farooq, director of research at Chase Securities, mentioned a steady influx of capital from mutual funds as fixed income investments convert to equities, further fueling the rally.
- Robust Company Profits: The profitability of companies listed on the PSX has also contributed to the positive momentum, with analysts expecting continued growth in the upcoming earnings season.
Looking Ahead
Shahbaz Ashraf, chief investment officer at FRIM Ventures, highlighted that the PSX is one of the top-performing markets globally in 2024. The upcoming Monetary Policy Committee (MPC) meeting, where interest rates may drop by 200 to 250 basis points, is seen as a key catalyst for future gains.
Additionally, Awais Ashraf, director of research at AKD Securities, pointed to the anticipation surrounding Prime Minister Shehbaz Sharif’s visit to Saudi Arabia for the Future Investment Initiative (FII). This event is expected to attract foreign investments and foster economic dialogues.
