The capital market continued its historic rally on Friday, smashing records for the second consecutive day as the KSE-100 Index surpassed the 115,000-point mark.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged by 991.94 points, or 0.87%, to reach an intraday high of 115,172.44.

The market’s bullish momentum is driven by improving macroeconomic indicators, expectations of significant monetary easing, and robust liquidity inflows.

Declining inflation, surging remittance inflows, and ongoing government reforms have further strengthened market sentiment, underscoring growing optimism about Pakistan’s economic prospects.

Pakistan’s foreign reserves remain stable at $16.6 billion as of December 6, 2024, despite a slight dip of $19 million. Reserves held by the State Bank of Pakistan (SBP) rose by $13 million to $12.051 billion—the highest since March 2022—while commercial bank reserves decreased by $32 million to $4.55 billion.

The country’s Current Account Deficit (CAD) narrowed sharply by 79% year-on-year to $217 million in the first two months of FY2025, with August recording a $29 million surplus. This improvement is supported by robust remittance inflows, stable export earnings, and enhanced domestic production.

Exports are projected to reach $33 billion by FY2025, while remittances are expected to rise to $33.5 billion, backed by government incentives and reduced global inflation.

Expectations of significant monetary easing have further boosted market sentiment. On Wednesday, the government reduced Treasury Bill (T-bill) yields by up to 100 basis points.

The auction raised Rs1.256 trillion, exceeding the target of Rs1.2 trillion, with the largest yield cut of 100 basis points applied to three-month papers, reducing the rate to 11.99%.

Analysts widely anticipate the SBP will cut its policy rate by up to 200 basis points during the December 16 Monetary Policy Committee (MPC) meeting, supported by declining inflation, which dropped to 4.9% in November, its lowest level since April 2018.

Economic activity continues to accelerate, reflected by a 62% year-on-year surge in passenger car sales in November and a 50% rise during the first five months of FY2025. In addition, the Asian Development Bank (ADB) has approved $530 million in loans to modernize Pakistan’s power distribution infrastructure and expand social protection programs.

The government revised National Savings Schemes (NSS) profit rates earlier this week, with the Savings Account rate cut by 250 basis points to 13.5%. This is expected to redirect funds from savings instruments into equities, providing further support to market activity.

Saudi Arabia’s extension of a $3 billion deposit and trade agreements worth $560 million have strengthened Pakistan’s foreign reserves and reinforced investor confidence.

The banking sector’s Advance-to-Deposit Ratio (ADR) improved to 47.8% as of November 29, 2024, as banks aim to meet the mandatory 50% threshold by December 31 to avoid penalties.

On Thursday, the KSE-100 Index surged by 3,370.29 points, or 3.04%, to close at 114,180.50, marking the third-largest single-day point-wise rally in PSX history. The index reached an intraday high of 114,408.62, reflecting unparalleled investor confidence.

With a stable macroeconomic outlook, declining inflation, and anticipated monetary easing, the market is expected to maintain its upward trajectory.

The Pakistan Stock Exchange (PSX) has set a new record by surpassing the historic 113,213-point milestone for the first time.

In a remarkable start to the trading session, the stock market saw a rapid increase of 1,400 points within just half an hour. The KSE-100 Index surged by 1,467 points, reaching an unprecedented 112,277 points.

Earlier, the PSX achieved another milestone shortly after the market opened, with the index climbing by 1,200 points in just 15 minutes. The KSE-100 Index increased by 1,231 points, settling at 112,041 points.

In yet another instance of record-breaking performance, the PSX witnessed a sharp rise of 1,000 points in just 10 minutes. The KSE-100 Index surged by 1,100 points, reaching 111,911 points, reclaiming the 111,000-point mark and marking the highest level in its history.

The PSX’s outstanding performance highlights strong investor confidence and significant market momentum, positioning it as a key indicator of economic optimism.

The Pakistan Stock Exchange (PSX) achieved a historic milestone on Tuesday, surpassing the 111,000-point mark for the first time, propelled by strong macroeconomic indicators and rising remittance inflows.

The KSE-100 Index surged 1,044.35 points, or 0.95%, to reach an intraday high of 111,014.73, building on Monday’s close of 109,970.38, underscoring continued investor optimism as the market extends its unprecedented streak of gains.

The rally highlights improving sentiment around Pakistan’s economic outlook, driven by declining inflation, stronger foreign reserves, and increased economic activity. Investors remain encouraged by ongoing reforms and the potential for further monetary easing, setting the stage for sustained market momentum in the days ahead.

Remittances reached $14.8 billion during the first five months of FY2025, marking a 33.6% year-on-year increase, according to the State Bank of Pakistan (SBP). November alone saw inflows of $2.9 billion, up 29.1% from the same month last year, though slightly lower than October’s figure.

Key drivers behind this growth include a stable rupee, government incentives for banks and money exchangers, and a rise in emigration. Over one million skilled professionals have left Pakistan in the last three years, significantly boosting official remittance inflows. Additionally, efforts to curb illicit currency trading and easing global inflation have further supported this positive trend.

Broader macroeconomic improvements have continued to drive market optimism. Inflation dropped to 4.9% in November, the lowest since April 2018, opening the door for potential monetary easing. Saudi Arabia’s decision to extend a $3 billion deposit for another year and formalised trade deals worth $560 million have reinforced foreign reserves and investor confidence.

Economic activity also remains strong, with petroleum sales hitting a 25-month high of 1.58 million tons in November. Furthermore, the government’s successful Rs353 billion Ijarah Sukuk auction has added liquidity to the financial system.

Monday saw the PSX extend its rally for the ninth consecutive session. The KSE-100 Index gained 916.43 points, or 0.84%, to close at 109,970.38, with an intraday high of 110,248.98.

The upcoming State Bank of Pakistan monetary policy meeting on December 16 is a key event for investors, with expectations of a significant rate cut that could offer additional momentum to the market.

The stock market continued its record-breaking streak on Friday, surpassing the 109,000-point mark, fuelled by improving macroeconomic fundamentals, including a rise in Pakistan’s foreign reserves.

The Pakistan Stock Exchange (PSX) continued its record-breaking streak on Friday, with the KSE-100 Index surging 1,239.12 points, or 1.14%, to hit a new intraday high of 109,478.08.

This remarkable rally reflects a week of rapid growth for the PSX, which crossed the 100,000 mark just seven days ago.

Pakistan’s total liquid foreign reserves reached $16.6 billion as of November 29, 2024, according to the State Bank of Pakistan (SBP).

These reserves include $12 billion held by the SBP, which increased by $620 million during the week, driven by an official inflow of $500 million from the Asian Development Bank (ADB).

Additionally, the Saudi Fund for Development (SFD) extended the term for a $3 billion deposit maturing on December 5, 2024, by another year.

This extension followed a meeting between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammad Bin Salman during the “One Water Summit” in Riyadh.

Meanwhile, another reason for the market’s rise is the inflation rate, which dropped to 4.9% in November, its lowest level since 2017, providing room for further monetary easing. This marks a sharp decline from last year’s historic high of 38% and is well below the SBP’s target range of 5-7%.

Analysts widely expect the SBP to cut interest rates by at least 200 basis points in its December 16 meeting, which would bring the total reduction to 900 bps since June.

As the PSX approaches the 110,000-point mark, market analysts remain optimistic about continued growth.

With robust macroeconomic indicators, rising reserves, and the likelihood of a significant rate cut, the capital market is positioned for sustained momentum heading into the final weeks of 2024.

The stock market continued its ascent to cross 106,000 points mark on Thursday, driven by growing anticipation of a substantial interest rate cut in the State Bank of Pakistan’s (SBP) upcoming monetary policy meeting on December 16, record-low inflation and strengthening economic indicators.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index hit a new intra-day high of 106,123.05, rising by 1,018.72 points, or 0.97%, reflecting sustained investor confidence and optimism in the market’s upward trajectory.

Finance Minister Mohammad Aurangzeb has also reaffirmed the government’s dedication to economic stabilisation through structural reforms and adherence to the International Monetary Fund (IMF) programme.

Speaking at an event in Islamabad, Aurangzeb highlighted that the current account deficit has narrowed, inflation has dropped to a 70-month low, and the country’s economy is showing signs of recovery.

The Ministry of Finance also reported improved financial stability, attributing it to ongoing reforms.

As inflation continues to plummet expectations are rising for further monetary easing, signalling a brighter economic outlook.

The SBP has already slashed interest rates by 700 basis points (bps) across four consecutive meetings since June, bringing the rate to 15%. Experts widely anticipate another significant reduction, with most analysts predicting a cut of at least 200 bps.

A poll conducted by Topline Securities revealed that 71% of respondents expect a minimum reduction of 200 bps, with 63% forecasting exactly 200 bps, 30% expecting 250 bps, and 7% anticipating a larger cut.

The case for monetary easing is supported by November’s Consumer Price Index (CPI) inflation, which clocked in at 4.9%—its lowest in 78 months and well below the SBP’s target range of 5-7%.

“This reading places inflation significantly below the target, leaving substantial room for further rate cuts,” Topline Securities noted.

The decline in inflation is attributed to faster food disinflation and negative electricity price adjustments. Analysts predict inflation will remain in single digits in the coming months, maintaining a favorable environment for monetary easing.

The trade data released by the Pakistan Bureau of Statistics (PBS) has further bolstered market sentiment. Pakistan’s trade deficit narrowed by 7.39% during the first five months (July-November) of the current fiscal year, standing at $8.651 billion compared to $9.341 billion during the same period last year.

Exports rose by 12.57% to $13.69 billion, while imports increased by 3.90% to $22.342 billion. November’s trade deficit narrowed even further, dropping 18.60% year-on-year to $1.589 billion compared to $1.952 billion in November 2023.

Thursday’s rally follows an impressive session on Wednesday, when the KSE-100 Shares Index climbed 545.26 points, or 0.52%, to close at 105,104.33 points after reaching an intra-day high of 105,473.56 points

The market’s strong performance reflects the impact of stabilising macroeconomic indicators and expectations of further monetary easing.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index surged further, adding 1,086.3 points, or 0.48%, to hit a new intraday high of 104,361.24, with investor sentiment buoyed by a record drop in inflation and hopes for continued economic reforms.

The day’s trading began on a ceremonial note as Federal Minister for Planning Ahsan Iqbal rang the traditional gong to commence trading at the Pakistan Stock Exchange.

During the event, Ahsan Iqbal highlighted the government’s commitment to economic stability and long-term growth. “Crossing the 100,000 mark in the 100-Index showcases Pakistan’s potential to the world,” he said.

He recalled past milestones, saying, “In three years, we attracted $25 billion in investment from China and controlled load-shedding.” He also noted that PricewaterhouseCoopers had projected Pakistan as a developing nation until 2030.

Addressing Pakistan’s recent challenges, Iqbal observed, “In April 2022, when we took charge, Pakistan was on the verge of default. The choice was to save politics or the state.” He credited the government’s tough decisions, such as increasing energy prices and delaying elections, for stabilising the economy.

“Inflation has dropped from 38% to below 5% in two years, and the stock market has soared from 30,000 to 100,000 points,” he noted, highlighting the PSX as one of the most successful markets globally.

PSX Chairperson Dr Shamshad Akhtar highlighted the significance of Pakistan’s robust capital market and its recent achievements.

“Ahsan Iqbal has been a voice for developing countries at the United Nations,” remarked Dr Shamshad Akhtar, who praised the federal minister’s contributions to global and national economic progress.

She noted that the Pakistan Stock Exchange remains one of the best-performing markets in the region and the world, driven by strong economic indicators and policies.

Dr Akhtar emphasised the role of the government in fostering market growth through targeted programs.

“Crossing 100,000 points last week has brought renewed enthusiasm to the market,” she said, adding that the PSX’s ability to finance long-term developmental projects makes it a critical asset for Pakistan’s economic future.

Reflecting on the market’s performance, Dr Akhtar pointed out that the PSX has delivered a 7% return in dollar terms over the past five years.

She also underscored the importance of partnerships with the Chinese consortium in supporting the exchange’s growth journey, asserting that crossing the 100,000-point milestone in the KSE-100 Index highlights Pakistan’s potential to the world.

A significant factor in today’s rally was Prime Minister Shehbaz Sharif’s optimism regarding a potential reduction in the key policy rate by the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) in its upcoming meeting, which analysts believe will provide further impetus to the equity markets.

Addressing a federal cabinet session on Monday, expressed optimism about a further reduction in the SBP’s policy rate.

the premier highlighted the 4.9% inflation rate recorded in November — the lowest in six-and-a-half years — as a game-changer for the country’s economic landscape.

He stressed that such a decline not only alleviates the financial burden on the masses but also paves the way for economic growth. “The decrease in inflation not only reduces the financial burden on the masses but also opens avenues for economic growth,” he said.

The premier added that achieving stability must now transition into fostering GDP growth, exports, industrial development, and job creation.

He attributed the development to effective economic policies and expressed optimism about a further reduction in the SBP’s policy rate.

Inflation data released by the Pakistan Bureau of Statistics (PBS) showed a significant slowdown, beating forecasts of 5.8%-6.8%.

“It is beyond imagination,” said the Prime Minister, recalling inflation levels of 3.5% during the previous tenure of the Pakistan Muslim League-Nawaz (PML-N).

Analysts note that the cooling price pressures reflect a mix of improved monetary measures and stabilising economic fundamentals and view this as a clear signal of easing price pressures, which could prompt the SBP to cut interest rates further, creating a more conducive environment for equity markets.

Monday’s session set the tone for today’s rally, with the KSE-100 gaining 1,917.62 points to close at a record 103,274.94.

Sectors like banking, technology, and oil and gas exploration led the gains last, with banking stocks benefitting significantly from recent regulatory changes, such as the removal of the Minimum Deposit Rate (MDR) requirement for corporate deposits.

As the PSX continues to explore unprecedented territory, market analysts anticipate sustained growth, supported by consistent policy measures, stabilised external accounts, and reduced costs of doing business.

The capital market began the week on a high note, driven by a combination of improving economic indicators, strong corporate earnings, and robust investor confidence.

The market is now in unprecedented territory, reflecting optimism surrounding stabilising macroeconomic conditions and policy reforms aimed at fostering growth.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index on Monday climbed further, adding 931.39 points to reach a new high of 102,288.71 during intraday trading.

This marks an increase of 0.92% from the previous close of 101,357.32, as the market continues to capitalise on the positive momentum that saw it cross the 100,000-point milestone last week.

One of the developments bolstering market sentiment was the receipt of $500 million from the Asian Development Bank (ADB) as part of the Climate Change and Disaster Resilience Enhancement Program.

This inflow has strengthened Pakistan’s foreign exchange reserves, pushing them close to the $12 billion mark. Analysts view this as a pivotal factor in reducing economic uncertainty and enhancing investor optimism.

Sectoral performance has been key to the index’s climb, with commercial banks leading the charge by contributing 1,675 points last week.

The removal of the Minimum Deposit Rate (MDR) requirement for corporate deposits further buoyed the banking sector, which has continued to attract substantial investor interest.

Technology and communication, oil and gas exploration, and property sectors also posted robust gains last week, reflecting broader market participation.

Market analysts credit the rally to the government’s decisive economic reforms and a brighter inflation outlook, with projections suggesting inflation could drop to 5.6%-6.5% by December.

This development has raised expectations that it could lead to a further interest rate cut by the State Bank of Pakistan (SBP), bolstering investors’ confidence.

Lower inflation expectations, coupled with a significant interest rate cut by the SBP earlier in November, have created a favourable environment for equity markets.

The average daily traded value on the ready counter rose by 7.1% week-on-week, reaching Rs36.85 billion, while foreign investors withdrew $15.1 million, countered by strong buying from local insurance companies.

Today’s rise follows the index surpassing the unprecedented 100,000-point mark last week, closing at its then-highest level of 101,357.32 on Friday.

The outgoing week saw the market surge by 3,559.09 points on a weekly basis, driven by a combination of local investor enthusiasm and institutional support.

Despite dips, the market recovered strongly, showcasing resilience amidst political volatility and a favourable regulatory environment.

As the PSX continues to push into uncharted territory, the outlook remains optimistic.

Analysts believe that consistent policy support, stabilised external accounts, and reduced costs of doing business will sustain the market’s upward trajectory.

 

Prime Minister Shehbaz Sharif on Thursday commended the Pakistan Stock Exchange (PSX) for its historic performance, as the benchmark KSE-100 Index crossed the 100,000-point threshold for the first time in history.

In a statement, the prime minister attributed the milestone to strong investor confidence in the government’s policies and the efforts of the economic team to steer the national economy towards stability and growth.

“The stock exchange crossing 100,000 points for the first time reflects the business community’s and investors’ trust in government policies,” PM Shehbaz said.

“The government’s economic team and officials working tirelessly to promote investment in the country deserve praise for achieving this milestone,” he added.

The KSE-100’s remarkable rise is part of a broader market recovery, with the index surging 150% from 40,000 to 100,000 points over the last 17 months.

Experts attribute this surge to a mix of factors, including exchange rate stability, the transition from a $3-billion Stand-By Arrangement to a longer agreement with the International Monetary Fund (IMF), improved earnings from index-heavy sectors, and a general positive sentiment driven by recent monetary easing.

The prime minister also reaffirmed his government’s commitment to economic stability, pointing to achievements such as a decline in inflation, interest rates reduced to 15%, and record-high remittances.

“We will continue to work diligently for the country’s progress,” PM Shehbaz emphasized, vowing to thwart any attempts by the country’s adversaries to destabilize the nation’s development.

The Pakistan Stock Exchange (PSX) achieved a historic milestone on Thursday, as the benchmark KSE-100 Index surged past the 100,000-point mark, reaching an all-time high of 100,346.50 points during intra-day trading.

The remarkable rally of over 1,000 points, equivalent to a 1.09% gain, came on the heels of a volatile week that saw the market experience significant turmoil.

The index opened strong, continuing its upward trajectory after having suffered a major setback earlier in the week due to violent political unrest in Islamabad.

On Tuesday, the market had plummeted by more than 3,500 points, as clashes between the police and protesters from the Pakistan Tehreek-e-Insaf (PTI) party disrupted the nation’s capital.

However, with the party calling off its protest amid a heavy government crackdown, investor confidence was restored, propelling the market to a robust recovery.The PSX’s impressive surge reflects the growing optimism among investors, bolstered by positive economic indicators.

Analysts point to the recent stability in key economic factors, including a favourable outlook on inflation and the ongoing growth in the country’s industrial production, as critical drivers behind the renewed investor enthusiasm.

“The crossing of the 100,000-point threshold is a testament to the resilience of Pakistan’s stock market and the strength of investor confidence, despite the political turbulence,” said a senior market analyst.

“This surge signals that the market is finding its footing as the broader economic landscape improves.”

While the KSE-100’s strong performance indicates optimism, analysts caution that the political landscape will remain a key factor influencing market sentiment.

The PSX’s ability to maintain its momentum will largely depend on the stability of the political situation, which remains volatile due to ongoing political disputes and protests.

Despite the risks, the index’s surge is a hopeful sign for Pakistan’s economic prospects, demonstrating the potential for continued growth as long as the political and economic environment remains conducive to investment.

The Pakistan Stock Exchange (PSX) experienced a remarkable surge on Monday, with the Hundred Index climbing by 3,741 points to close at 98,315 points, signaling a robust bullish trend in the market.

The extraordinary rally began as soon as trading opened, with the index swiftly breaking through four critical thresholds—95,000, 96,000, 97,000, and 98,000 points—within minutes.

Market analysts attribute this unprecedented growth to a combination of positive investor sentiment, improved macroeconomic indicators, and optimistic projections regarding Pakistan’s economic stability.

According to Rizwan Alam, a prominent market expert, this historic surge reflects renewed confidence among investors.

“This rally shows that the market is rebounding strongly, likely driven by expectations of favorable policies and stability in financial markets,” he said.

The surge in the stock market has also bolstered investor morale, with trading volumes significantly increasing across multiple sectors. Market participants are hopeful that this upward trend will continue in the coming sessions.

The Pakistan Stock Exchange is now nearing the historic 100,000-point mark, with stakeholders watching closely to see if the bullish momentum persists.