Pakistan Stock Exchange (PSX) continued its remarkable momentum on Monday as the benchmark KSE-100 index crossed the 156,000 mark for the first time in history, which represented robust investor confidence and chances of high growth in Pakistan’s economy.
At the close of trading, the index registered a surge of 1,810.11 points, or 1.17%, at 156,087.31.
The unprecedented milestone was hailed as a moment of national celebration and Prime Minister Shehbaz Sharif himself expressed profound satisfaction over the PSX’s performance. In a statement, the premier lauded the efforts of his economic team, emphasising that the landmark performance reflects the business community’s growing confidence in the government’s reform-driven economic policies.
“The PSX’s record performance showcases the resilience of our economy and the trust of investors in our forward-looking policies,” the PM remarked.
Arif Habib Limited Head of Research Sana Tawfik told The Express Tribune that multiple factors were driving the bullish sentiment. First of all, investor enthusiasm grew following news that the government was actively working to resolve the longstanding circular debt issue in the energy sector, a key challenge afflicting Pakistan’s economy.
Market performance improved as stakeholders widely anticipated the announcement of the status quo in the upcoming State Bank of Pakistan’s (SBP) monetary policy committee meeting. A stable policy rate is believed to support business activity and investment, she said.
Additionally, expectations of growth in the construction and cement sectors, particularly in the wake of post-flood reconstruction, attracted significant buying interest in attractive stocks.
Besides, projections of handsome, and in some cases better-than-expected, quarterly earnings from key sectors added to investor optimism, which reinforced the bullish outlook.
“Given the confluence of macroeconomic stability, policy clarity and sector-specific triggers, the bullish trend is expected to continue unabated in the near term,” Tawfik said.
Overall trading volumes increased to 1.13 billion shares compared to 1.08 billion in the previous session. Traded value stood at Rs62.3 billion.
Shares of 482 companies were traded. Of these, 229 stocks closed higher, 228 fell and 25 remained unchanged. K-Electric was the volume leader with trading in 93.7 million shares, rising 28 paisa to close at Rs5.62.
