- PSX sees a strong rally, the KSE-100 index ends at 111,377.96.
- The reference index increases 1,055 points, up 0.96%.
- Intrajournal records of 111 622.72 and a minimum of 109,948.57.
The stock market experienced a strong resumption on Monday, when the feeling of investors improved after weeks of sales pressure.
The KSE-100 index of the Pakistan Stock Exchange (PSX) jumped 1,055.03 points, or 0.96%, to end at 111,377.96. The index affected an intraday summit of 111,622.72, while the lowest level of the session amounted to 109,948.57, reflecting the renewed trust of investors after recent corrections.
Market analysts awarded Monday’s push to attractive assessments and a renewal of investor trust after recent corrections.
Sana Tawfik, research manager at Arif Habib Limited, explained the change of feeling, saying: “In the past few weeks, we had observed the sale pressure, but now the market has somewhat consolidated and people have moved Towards the purchase side.
“Due to the previous sale, the actions had already reached attractive levels, which led to an increase in purchases. In addition, the market will receive the support of certain sectors and companies which should report solid results. Thus, the combination of the winning season and the purchasing activity is the reason for this trend, “she added.
This change of momentum was obvious in large purchases in several sectors, in particular in banking, cement and energy actions, which should display solid reports on profits in the coming days.
Meanwhile, the Ministry of Finance and Revenues has clarified the reports of the continuous visit to the International Monetary Fund (IMF) in Pakistan, stressing that the mission is carrying out a diagnostic evaluation of governance and corruption (GCDA).
According to a statement published on Sunday, the IMF’s visit aims to assess governance practices and anti-corruption measures.
The ministry stressed that the IMF has long played a role in promoting transparency, responsibility and economic governance of the public sector. The current assessment is one of the wider efforts to ensure sustainable economic management.
In another positive development for the economy, the Arif Habib Limited (AHL) brokerage firm has provided that the consumer price index (CPI) for February would relax 1.99% in annual shift (yoy) – The lowest inflation rate recorded in almost a decade.
Forecasts are based on data from the first week of the sensitive price index (SPI), which also suggests a drop in the CPI per month (MOM) of 0.37%.
The drop in the inflation trend has increased expectations of continuous monetary softening from the State Bank of Pakistan (SBP), which recently reduced its 12% policy rate on January 27.
Fitch Ratings, in a note published Thursday, recognized Pakistan’s progress in the restoration of economic stability and the reconstruction of external stamps.
The agency stressed that continuous structural reforms will be crucial to obtaining additional IMF funding and other international lenders.
Fitch noted that consumer prices inflation had dropped significantly, on average almost 24% during financial year 24 to just over 2% in January 2025, a key factor in the recent SBP rate reduction decision.
The resumption of the PSX follows a week of volatile negotiation, during which the reference index KSE-100 ended at 110,322.93 Friday.
The previous week had been marked by taking advantage, political uncertainty and concerns about the next IMF review, which has led to sales pressures in all areas.