KARACHI, Pakistan: The Pakistan Stock Exchange (PSX) powered past the 154,000-point mark on Friday, reflecting an unbroken wave of investor confidence that has lifted the market for six straight sessions. The bullish run comes at a time when macroeconomic indicators are showing resilience, though looming flood-related risks continue to cast a shadow on the country’s outlook.
The benchmark KSE-100 index surged by 1,611 points (1.06pc) to close at 154,277, after touching an intraday high of 154,280. This rise follows a strong government treasury-bill auction in which Rs491 billion were raised, far exceeding the Rs400 billion target—injecting further momentum into the market.
Market watchers attribute the rally to multiple factors, including a strengthening rupee, improving liquidity, and the lack of attractive returns from traditional investment avenues such as real estate, fixed income and commodities. “Equities have become the natural choice for investors seeking better yields,” noted Awais Ashraf, Research Director at AKD Securities.
However, not all experts are convinced that the current surge reflects sustainable growth. Analysts warn that investor euphoria may be running ahead of fundamentals. Yousuf M. Farooq of Chase Securities highlighted that the devastating floods—threatening agriculture, infrastructure, and supply chains—pose a real danger to the economy. He pointed out that valuations in certain sectors are already overstretched, with markets “no longer as cheap as they were two years ago.”
Farooq urged small investors to remain cautious, recommending steady investments through mutual funds or diversified portfolios instead of chasing short-term rallies. “Long-term wealth in equities requires discipline and patience, not speculation,” he added.
Despite the cautionary notes, the PSX’s upward trajectory is being seen as a sign of underlying investor faith in Pakistan’s economic resilience. The challenge, analysts argue, will be to balance this momentum with the realities of climate-related shocks and structural weaknesses in the economy.
As the market continues its upward climb, the question remains whether this rally will stand firm against the weight of ground realities—or whether it is merely a fleeting wave of optimism.
This story has been reported by PakTribune. All rights reserved.