KARACHI – The Pakistan Stock Exchange surged past the 133,000-point mark this week, marking a fresh all-time high as investor confidence strengthened on improving economic indicators and policy expectations.
Several factors contributed to the rally: the rupee appreciated modestly against the dollar, helping ease inflationary pressure; positive commentary from the central bank suggested a potential shift toward interest rate cuts; and speculation grew around Pakistan’s improving engagement with international lenders.
Sector-Wise Momentum
Leading the rally were banking, cement, and energy stocks. Banking shares gained on forecasts of higher credit activity, while cement stocks surged due to anticipated infrastructure spending outlined in the federal budget. Energy sector firms also saw gains, supported by expectations of declining circular debt and higher global oil price fundamentals.
Investor Composition and Liquidity
Foreign and local institutional investors increased their exposure to the market, and daily trading volumes reached multi-month highs. Analysts noted that improved liquidity enabled more significant capital flows, further bolstering PSX performance.
Risks and Watchpoints
Despite the optimism, market watchers cautioned that sustainability of the rally hinges on sustained macroeconomic reforms, government borrowing plans, and further clarity on IMF financing. Upcoming fiscal developments and central bank policy announcements will be critical in determining whether the benchmark can maintain its upward trajectory.
This story has been reported by PakTribune. All rights reserved.
