The Pakistan Stock Exchange (PSX) climbed over 700 points on Monday, reaching an all-time high despite early expectations of a technical correction, according to an analyst.
The PSX’s benchmark KSE-100 index gained 729 points, reaching 94,020 points in intraday trading, up from its previous close of 93,291.68 points.
Raza Jafri, CEO of EFG Hermes Pakistan, told Thenews.com.pk that the energy sector was the primary driver behind the index’s rise, along with gains in previously underperforming high-beta stocks.
“The market is currently resisting early calls for a technical correction, but this remains a possibility given the index’s rapid rise this quarter,” Jafri added.
Analysts attribute the recent upward trend to favorable macroeconomic conditions, including the State Bank of Pakistan’s 250 basis points policy rate cut, which has brought the rate down to 15%.
In addition, remittances to Pakistan reached $3.1 billion in October 2024, strengthening the economy further.
Pakistan’s representation in the MSCI index rose to 4.4% in the latest quarterly review, making it the second most liquid market in the MSCI Frontier Markets.
Intermarket Securities Limited noted that the main factor to monitor will be the upcoming International Monetary Fund (IMF) mission meeting this week.
