The Pakistan Stock Exchange (PSX) continued its remarkable upward trajectory on Monday as the benchmark KSE-100 Index surged by 1,860.12 points (1.84%) to reach a historic intra-day high of 103,217.44. The rally was fueled by strong economic indicators, a projected decline in inflation, and expectations of robust corporate earnings in the upcoming results season.
This performance builds on last week’s momentum, when the index crossed the 100,000-point milestone for the first time. The rally has been driven by sustained investor optimism, bolstered by improving macroeconomic conditions and increased market liquidity.
Sana Tawfik, Head of Research at Arif Habib Limited, highlighted the market’s favorable environment:
“With inflation expected to hit its lowest level since April 2018, we anticipate it around 4.7%. This, coupled with improved market liquidity, has significantly boosted market sentiment.”
Adding to investor confidence was the receipt of $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Program. This inflow strengthened Pakistan’s foreign exchange reserves, bringing them closer to $12 billion. Analysts have hailed this as a key factor in reducing economic uncertainty.
