KARACHI: The benchmark index of the Pakistan Stock Exchange (PSX), the KSE-100, achieved a significant milestone by crossing the 62,000 mark on Monday, extending its bullish run from previous sessions.
At 9:40 am, the KSE-100 index stood at 62,401.94, marking a gain of 710.69 points or 1.15% compared to the previous close of 61,691.25.
Analysts attribute this persistent upward trend to positive developments in the country’s macroeconomic indicators. Notably, the State Bank of Pakistan’s foreign exchange reserves rose by $77 million to reach $7.2 billion for the week ending on November 24. Additionally, anticipation of a forthcoming reduction in the policy rate is contributing to the optimistic sentiment.
Faran Rizvi, from JS Global, explained that market participants tend to act in advance based on their perceptions of future macroeconomic developments. He expressed confidence that the bullish momentum would continue, especially with increasing clarity in macroeconomic factors leading up to the election date.
Highlighting foreign investors’ heightened interest, Rizvi noted that November witnessed the highest injection of funds in six years, reaching $34.5 million – the highest level since January 2018.
Raza Jafri, Head of Equity at Intermarket Securities, emphasized the anticipation of a potential interest rate cut, set to be announced after the monetary policy meeting on December 12. While acknowledging a mix of market participants, he pointed out that most activity was observed in “cheap energy names,” driven by the expectation of forthcoming monetary easing.
