Stocks sustained their record-setting pace on Tuesday, climbing to a new peak above the 95,600 mark, as investor optimism was bolstered by a strong macroeconomic outlook and reassurances from the finance minister on economic policy, taxation, and the International Monetary Fund visit.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index jumped 624.15 points, or 0.64%, to hit an intraday high of 95,637.82.
The session began at the previous close of 94,995.67, maintaining positive momentum fueled by strong performances in key sectors, including telecommunication, banking, and energy.
Stocks like Hascol Petroleum, Waves Home Appliances, and TPL Properties are among the most actively traded, with significant gains reflecting retail and institutional participation.
Investor sentiment was lifted by Finance Minister Mohammad Aurangzeb’s assurance that the International Monetary Fund’s (IMF) recent visit posed no threat to Pakistan’s $7 billion loan programme.
He confirmed that there were no discussions of additional taxes, particularly for the salaried class or manufacturing sector.
Further optimism came from the State Bank of Pakistan’s (SBP) announcement of a $349 million current account surplus for October 2024. This marked the third consecutive month of surplus, supported by a 7% month-on-month and 24% year-on-year growth in remittances.
Foreign exchange reserves also reached a two-year high, bolstering confidence in the country’s economic recovery.
With reserves projected to cross $11 billion in the coming weeks, local mutual funds have actively shifted investments from fixed-income securities to equities, driving the benchmark index’s 20% surge since September.
Telecommunication and financial stocks led the rally on Monday, with PTCL (38.82 million shares traded) and Sui Southern Gas Company (48.77 million shares) among the standout performers.
Analysts attributed the ongoing rally to structural reforms, robust corporate earnings, and the absence of a mini-budget.
The IMF’s acknowledgement of Pakistan’s progress in improving its tax-to-GDP ratio, coupled with the government’s focus on state-owned enterprise reforms and independent power producer (IPP) deals, has instilled confidence among investors.
This is a developing story and is being updated with more details.
