In a historic milestone, the Pakistan Stock Exchange (PSX) soared past the 94,000 mark during intra-day trading on Monday, reaching a new all-time high. The PSX’s benchmark KSE-100 index surged by 729 points, rising to 94,020 points from the previous close of 93,291.68 points. This jump came as the market brushed aside early concerns about a potential technical correction, according to analysts.
Raza Jafri, CEO of EFG Hermes Pakistan, attributed the rally largely to gains in the energy sector, which was bolstered by a broader recovery in previously underperforming high-beta stocks. He noted that while the market has defied initial expectations for a correction, the possibility of such a pullback remains given the rapid pace of the index’s rise this quarter.
Analysts also pointed to a range of favorable macroeconomic factors fueling the market’s momentum. These include the State Bank of Pakistan’s historic 250 basis point cut in the policy rate, reducing it to 15%, as well as strong remittance inflows of $3.1 billion in October 2024. Additionally, Pakistan’s increased weighting in the MSCI index, now at 4.4%, has positioned the country as the second-most liquid market within the MSCI Frontier Markets.
Looking ahead, analysts are keeping a close eye on the upcoming meeting of the International Monetary Fund (IMF) mission, which is expected to be a key factor in determining the market’s next move.
