The Pakistan Stock Exchange (PSX) kicked off the trading week on a bullish note, with the KSE-100 index surging over 600 points during the opening hours of Monday’s session.
As of 11:20 am, the benchmark index was recorded at 73,712.98, marking a significant increase of 627.48 points or 0.86%. The bullish sentiment was widespread across key sectors, including automobile assemblers, construction, chemical, and oil and gas exploration companies.
Index-heavy stocks such as Lucky Cement, Engro, PSO, and SNGPL also witnessed notable gains, contributing to the overall positive momentum of the market.
Arif Habib Limited (AHL) expressed optimism regarding the upward trajectory of the market, forecasting a potential surge towards the 73,600 mark. Should this level be breached, attention is expected to shift towards the range of 74,000, according to AHL’s report.
Market experts attribute the bullish trend at the PSX to several factors, including expectations of a fall in interest rates and positive momentum surrounding Pakistan’s pursuit of another larger programme with the International Monetary Fund (IMF).
The previous week saw a similar bullish trend at the PSX, fueled by fresh buying on expectations of increased foreign inflows and improving economic indicators. The benchmark KSE-100 index recorded a significant surge of 1,183.41 points on a week-on-week basis, closing at a new highest-ever level of 73,085.50 points.
In a significant development, Finance Minister Muhammad Aurangzeb emphasized the need for privatization during a panel discussion at the Pre-Budget Conference in Lahore. Aurangzeb dismissed the concept of “strategic state-owned enterprises,” advocating for public-private partnerships to accelerate the privatization agenda.
Globally, Asian shares reached 15-month highs on Monday, with market sentiment buoyed by optimism about a sustained recovery in the world economy. Chinese activity data and inflation figures will be closely monitored, with forecasts favoring further gains in retail sales and industrial output.
Chinese authorities are also set to sell 1 trillion yuan in longer-dated bonds to fund stimulus spending, further contributing to positive market sentiment across the region.
