Stock Market Maintains Momentum as Index Climbs 1,000 Points
The Pakistan Stock Exchange (PSX) continued its bullish streak, with the KSE-100 index gaining over 1,000 points, closing at 104,359.25. This surge marks a response to favorable economic data, including a drop in November’s inflation rate to 4.9%, the lowest since 2017, and a 19% reduction in the trade deficit.
The market initially faced volatility but rebounded strongly, hitting an intraday high of 104,445.80. Analysts attribute the rise to optimism over potential monetary easing by the State Bank of Pakistan (SBP), as real interest rates reached over 10%, potentially setting the stage for policy rate cuts.
Yousuf M. Farooq of Chase Securities highlighted the market’s upward rerating, driven by expectations of stronger earnings growth and lower interest rates. Retail investors were encouraged to adopt a long-term, diversified investment strategy.
Similarly, Awais Ashraf from AKD Securities emphasized the growing confidence in structural reforms and policy shifts. He advised focusing on rate-sensitive sectors poised to benefit from the central bank’s anticipated actions.
The sustained market rally reflects improving economic sentiment and highlights the potential for continued investment growth.
