The Pakistan Stock Exchange (PSX) surged over 700 points on Monday, reaching an all-time high as the market resisted early calls for a technical correction, according to an analyst.
The PSX’s benchmark KSE-100 index rose by 729 points to jump to 94,020 points during intra-day trading, up from the previous close of 93,291.68 points.
Raza Jafri, CEO at EFG Hermes Pakistan, told Thenews.com.pk that the energy sector was contributing most to the index’s rise, complemented by a catch-up rise in some hitherto underperforming high beta stocks.
“So far, the market is defying nascent calls [for] a technical correction but it remains possible given the index’s rapid ascent this quarter,” the capital market expert said.
Moreover, market analysts have credited the recent upward momentum to a series of favourable macroeconomic factors.
These include the State Bank of Pakistan’s unprecedented 250 basis points reduction in the policy rate, bringing it down to 15%.
Remittances to Pakistan also reached $3.1 billion in October 2024, offering further support to the nation’s economy.
Additionally, Pakistan’s representation in the MSCI index increased to 4.4% in the latest quarterly review, positioning the country as the second-most liquid market in the MSCI Frontier Markets.
Nonetheless, Intermarket Securities Limited says the key trigger to watch for the market will be the International Monetary Fund (IMF) mission’s meeting this week.
This is a developing story and is being updated with more details.
