The capital market extended its recovery on Tuesday, when investors’ confidence was reinforced in the middle of the expectations of solid profits from businesses and the decline in inflation.
Market players reacted positively to the attractive assessments of actions after recent corrections, while rebound in energy actions indicated that value buyers returned to the market.
The anticipation of another interest rate reduced by the State Bank of Pakistan (SBP) also contributed to the bullish feeling.
The KSE-100 index of the Pakistan Stock Exchange (PSX) has climbed 1,855.44 points, or 1.67%, reaching 113,233.40 at its intradible level, reflecting a renewal of optimism of investors.
The market recorded a minimum of 111,834.20, as purchasing interests were reinforced, in particular in the actions and the energy sectors which should display solid financial results.
Market analysts have linked the gathering to strong benefits of profits, attractive stock assessments and improving inflation prospects.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, said: “The market is recovering after a few days of dull activity. The profits season is underway, so the activity depends on how businesses are getting out of it. A strong recovery in energy actions indicates that value buyers come back to the market.
He also pointed out that the estimates of February inflation are lower than expected, strengthening the confidence of investors in a drop in potential rate in the coming months, which would still stimulate economic activity and market performance.
The brokerage company Arif Habib Limited (AHL) has provided that the consumer price index (ICC) for February will decrease 1.99% in annual shift (GO) – its lowest level in almost a decade .
The projection is based on data from the first week of the sensitive price index (SPI), which also suggests a drop in the ICC per month (MOM) of 0.37%. If it is confirmed, this could strengthen the expectations of an additional flexibility by the SBP, supporting more the feeling of investors and the economic recovery.
Addressing business leaders and investors on Monday, Prime Minister Shehbaz Sharif said that Pakistan had carried out macroeconomic stability in the past year, largely due to the International Monetary Fund (IMF) program and Reforms in progress.
He said that the Macro Foundation for the Pakistani economy had gradually improved the previous year, because inflation was 2.4% in January and that the bank’s policy rate was 12%.
Exports had improved compared to last year and the sending of foreign funds affected the level of three billion dollars, which was a record, he explained.
Despite this positive trajectory, the Prime Minister recognized that Pakistan is still faced with economic challenges, but stressed that the government was moving in the right direction to achieve long -term growth.
Further strengthening investors’ confidence, Pakistan funds jumped 25.2% in annual shift to $ 3 billion in January 2025, driven by economic recovery, stable rupee and government efforts to repress the illegal money.
For the July-January period for the financial year 2024-25 (7mfy25), the funding of funds totaled $ 20.8 billion, reflecting an increase of 31.7% in annual shift against $ 15.8 billion in the lessons from the same period last year.
While sending funds in January were slightly lower (-3.2%) to the plot of 3.1 billion dollars in December, analysts credited the reforms of the State Bank of Pakistan (SBP) and incentives government for banks and exchange companies for improving official entries.
In addition, the drop in world inflation and the increase in subsistence costs in Pakistan have prompted more Pakistani expatriates to send funds to their homes, helping to maintain the country’s external accounts.
The KSE-100 index, Monday, jumped 1,055.03 points, or 0.96%, to end at 111,377.97. The index affected a summit of 111,622.72, while the lowest level was recorded at 109,948.57, indicating a strong purchase interest.