PSX Crosses 106,000, Gains 1,500 Points on Positive Economic Signals
The Pakistan Stock Exchange (PSX) surged past the 106,000-point milestone on Thursday, adding over 1,500 points as positive economic indicators and easing inflation continued to fuel investor optimism.
The benchmark KSE-100 index climbed 1,533.30 points, or 1.46%, reaching 106,637.63 points by 12:03 am, up from its previous close of 105,448.05.
This upward trajectory follows a drop in Pakistan’s annual inflation rate to 4.9% in November—the lowest since 2017. The rally also comes a week after the PSX crossed the 100,000-point mark for the first time in its history.
Adding to the market’s bullish sentiment, Pakistan’s trade deficit narrowed by 19% year-over-year to $1.59 billion, strengthening hopes for a substantial current account surplus and boosting market confidence.
Awais Ashraf, director of research at AKD Securities, explained to Dawn.com that the 68% surge in the index this year has been primarily driven by aggressive mutual fund buying, particularly in the latter half of the year. He attributed the rally to “declining fixed-income yields amid a stable macroeconomic environment.”
On Wednesday, analysts pointed to investor optimism over a potential interest rate cut in the upcoming monetary policy meeting on December 16. Other factors bolstering confidence include signs of economic recovery, increased cement and petroleum sales, and a broader rebound in economic activity.
Additionally, Topline Securities Ltd reported earlier this week that trade value in the ready market soared to Rs57 billion ($203 million), the highest in 18 years, underscoring the market’s robust performance.
