The inventory market made historical past once more on Tuesday by surpassing the 111,000-point milestone for the primary time.
This record-breaking rally was pushed by sturdy macroeconomic indicators and rising remittance inflows, showcasing heightened confidence in Pakistan’s financial restoration and a constructive funding outlook.
The KSE-100 Index surged 1,044.35 factors, or 0.95%, to succeed in an intraday excessive of 111,014.73, constructing on Monday’s shut of 109,970.38, underscoring continued investor optimism because the market extends its unprecedented streak of features.
The rally highlights enhancing sentiment round Pakistan’s financial outlook, pushed by declining inflation, stronger international reserves, and elevated financial exercise. Investors stay inspired by ongoing reforms and the potential for additional financial easing, setting the stage for sustained market momentum within the days forward.
Remittances reached $14.8 billion through the first 5 months of FY2025, marking a 33.6% year-on-year enhance, in response to the State Bank of Pakistan (SBP). November alone noticed inflows of $2.9 billion, up 29.1% from the identical month final 12 months, although barely decrease than October’s determine.
Key drivers behind this progress embrace a secure rupee, authorities incentives for banks and cash exchangers, and an increase in emigration. Over a million expert professionals have left Pakistan within the final three years, considerably boosting official remittance inflows. Additionally, efforts to curb illicit forex buying and selling and easing world inflation have additional supported this constructive development.
Broader macroeconomic enhancements have continued to drive market optimism. Inflation dropped to 4.9% in November, the bottom since April 2018, opening the door for potential financial easing. Saudi Arabia’s determination to increase a $3 billion deposit for an additional 12 months and formalised commerce offers value $560 million have strengthened international reserves and investor confidence.
Economic exercise additionally stays sturdy, with petroleum gross sales hitting a 25-month excessive of 1.58 million tons in November. Furthermore, the federal government’s profitable Rs353 billion Ijarah Sukuk public sale has added liquidity to the monetary system.
Monday noticed the PSX lengthen its rally for the ninth consecutive session. The KSE-100 Index gained 916.43 factors, or 0.84%, to shut at 109,970.38, with an intraday excessive of 110,248.98.
The upcoming State Bank of Pakistan financial coverage assembly on December 16 is a key occasion for traders, with expectations of a major price minimize that would provide extra momentum to the market.
