The Pakistan Stock Exchange (PSX) started the week strong, rising more than 4,000 points as political tensions eased. The KSE-100 Index climbed 4.03%, up by 4,411.27 points, closing at 113,924.41 points. This followed a week of losses, but the market showed signs of recovery, indicating that investors were finding value.
Ahfaz Mustafa from Ismail Iqbal Securities said the market’s rise was due to the political calm after talks between Pakistan Tehreek-e-Insaf (PTI) and the government. He also mentioned that new investments from mutual funds and high-net-worth individuals were driving the market up.
Ahsan Mehanti from Arif Habib said the surge was led by investments in various sectors, with falling lending rates and positive economic indicators, like rising exports, remittances, and foreign exchange reserves, contributing to the boost.
Other factors included the State Bank of Pakistan’s rate cut, a large current account surplus, and increased power generation. Pakistan also saw higher profit repatriation, foreign direct investment, and a new loan agreement with the Asian Development Bank (ADB). Additionally, the Oil & Gas Regulatory Authority (OGRA) proposed higher gas rates, which could generate significant revenue.
In 2024, Pakistan’s stock market outperformed bonds, gold, and the US dollar, thanks to the economic reforms under the IMF program.
