Stocks kicked off the week on a excessive be aware, bolstered by optimistic financial indicators, together with rising overseas change reserves, a shrinking present account deficit, and declining inflation.
Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 114,230.06, gaining 982.77 factors, or 0.87%, from the earlier session’s shut of 113,247.29.
The rally was underpinned by enhancing inflation knowledge and hopes for a supportive financial stance by the State Bank of Pakistan (SBP).
Commenting on the buying and selling exercise, Ismail Iqbal Securities CEO Ahfaz Mustafa stated to Geo.television, “The market is rallying as a consequence of anticipated financial coverage easing and a normal restoration after final week’s correction.”
“The momentum from the final buying and selling day is continuous; nonetheless, volumes are on the decrease aspect,” he added.
With inflation displaying a pointy decline, market individuals are anticipating a possible fee minimize within the SBP first Monetary Policy Committee (MPC) assembly of 2025, scheduled for January 27.
Inflation dropped to 1.8% year-on-year for the week ending January 9, the bottom degree since October 2014, additional fuelling hopes of accommodative financial coverage.
Pakistan’s complete overseas change reserves surged to a three-year excessive of $18.7 billion in November 2024, supported by rising gold reserves and improved remittance inflows.
The nation’s present account surplus stood at $944 million for the primary 5 months of FY25, a pointy turnaround from the $1.67 billion deficit recorded in the identical interval final 12 months.
Total reserves reached a three-year excessive of $18.7 billion in November 2024, supported by strong remittance inflows and better gold costs.
Remittances offered additional assist, reaching $3.1 billion in December, marking a 29.3% year-on-year enhance. For the primary half of FY25, cumulative remittances grew by 32.8% to $17.8 billion.
On the fiscal entrance, Federal Board of Revenue of Pakistan (FBR) Chairman Rashid Mahmood Langrial reiterated the federal government’s bold goal of accumulating Rs13,500 billion in tax income this 12 months, regardless of a shortfall of Rs386 billion within the first half of FY25.
He known as for structural reforms within the tax system to deliver the wealthiest people into the tax internet, highlighting systemic points on each the taxpayer and collector sides.
Last week, the PSX endured a turbulent experience, largely pushed by political and safety considerations. The KSE-100 Index shed important worth, closing at 113,247.29 after a four-session shedding streak. The decline was exacerbated by aggressive promoting by panicked traders, regardless of optimistic financial knowledge.
However, institutional value-hunting within the closing session offered some respite, signalling the potential for restoration.
