Stocks sustained their explosive upward momentum on Tuesday, building on Monday’s record gains as economic optimism and cooling inflation continued to drive investor confidence.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index surged further, adding 1,284.13 points, or 1.24%, to hit a new high of 104,559.07.
The ongoing robust rally reflects the impact of stabilising macroeconomic indicators and expectations of further monetary easing.
“Subdued political uncertainty, following the sudden end of PTI rallies and continued macro improvement are continuing to drive the market,” said Muhammad Saad Ali, Director of Research at Intermarket Securities Ltd.
“Yesterday’s CPI inflation print for November strengthens the outlook for further rate cuts in the near future. The latter is driving strong liquidity in the market.”
The day’s trading began on a ceremonial note as Federal Minister for Planning Ahsan Iqbal rang the traditional gong to commence trading at the PSX.
During the event, Ahsan Iqbal highlighted the government’s commitment to economic stability and long-term growth. “Crossing the 100,000 mark in the 100-Index showcases Pakistan’s potential to the world,” he said.
“Inflation has dropped from 38% to below 5% in two years, and the stock market has soared from 30,000 to 100,000 points,” he noted, highlighting the PSX as one of the most successful markets globally.
A significant factor in today’s rally was Prime Minister Shehbaz Sharif’s optimism regarding a potential reduction in the key policy rate by the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) in its upcoming meeting, which analysts believe will provide further impetus to the equity markets.
