- The KSE-100 index ends at 114,398.69, up 685 points.
- Intraday High reaches 114,721.58, up 1,008 points.
- The reference index sees a minimum of 114,169.19, up 456 points.
Friday, the stock market extended its momentum upwards, supported by the expectations of a drop in the policy rate, progress on the restructuring of circular debt and a positive feeling for positive investors.
Market players have engaged in purchasing activities in key sectors, in particular in cement and energy actions, while optimism grew up before the announcement of the monetary policy of the Pakistan State Bank (SBP) on March 10.
The sensitive price index (SPI) has also shown a drop, strengthening expectations that March inflation figures will be lower, supporting the feeling more.
The KSE-100 index of Benchmark Kse-100 of Pakistan Stock Exchange (PSX) won 685.52 points, or 0.6%, closing at 114,398.69. The reference index affected an intra -day summit of 114,721.58, while the lowest level was recorded at 114,169.19.
“A factor that stimulates the market is the news of the resolution of the circular debt, which has led to an increase in the PSO and other related actions. Second, the cement sector works well, most likely in anticipation of a drop in the rate of policy expected on March 10. The third factor is the positive momentum continuing yesterday, supported by strong liquidity on the market,” said Sana Tawfik, Habib Limited.
“Finally, the SPI figure (sensitive price index) has shown a drop, which strengthens expectations that March inflation figures will also become lower, providing another positive signal for the market,” she added.
The Government of Pakistan plans to borrow 1.25 billion of commercial banks to restructure the old loans and remove the circular debt. According to Topline Research, bank presidents met government representatives in Islamabad on Thursday to discuss the terms of the loan plan, which was also shared with the International Monetary Fund (IMF).
Although the discussions are underway, some banks have expressed concerns about the rate offered by the government, which would have been set at Kibor minus 1%. An agreement is expected in the coming days.
Meanwhile, Pakistan’s inflation rate experienced a sharp drop in February 2025, falling to 1.5% in annual shift (Yoy), marking the lowest level since September 2015, according to the Pakistan Bureau of Statistics (PBS).
Inflation decreased by 0.9% per month in February, against an increase of 0.2% in January. The average inflation rate for the first eight months (July-February) for the financial year was 5.85%, significantly below 27.96% recorded during the same period last year. The drop in inflation has strengthened expectations of additional monetary flexibility when the SBP announces its next political decision on March 10.
On the outside front, the currency reserves of the central bank of Pakistan increased by $ 27 million to reach $ 11.25 billion during the week ending on February 28, the SBP reported on Thursday.
However, the country’s total foreign reserves held by the country fell $ 52 million to $ 15.874 billion, as commercial banking reserves have decreased $ 79 million to $ 4.624 billion. Despite the slight increase in SBP reserves, reimbursements of external debt and expanding the current account deficit remain key risks for overall stability.
The PSX had already attended a strong recovery Thursday, the reference index KSE-100 increasing by 1,459.42 points, or 1.3%, to close to 113,713.18 points. The highest index of the day was recorded at 113,871.22 points, while the lowest level was 112,446.01.