The Pakistan Stock Exchange (PSX) witnessed a significant surge, propelling the benchmark KSE-100 above the 73,000 mark during Friday’s trading.
The benchmark index stood at 73,266.01, marking a notable increase of 607.96 points or 0.84%. Key sectors experienced across-the-board buying, notably in cement, chemical, commercial banks, oil and gas exploration companies, and OMCs. Index-heavy stocks like LUCK, OGDC, PPL, PSO, SNGPL, and SSGC traded positively.
Experts attribute this surge to improved economic indicators, including Pakistan’s foreign exchange reserves and remittances. Additionally, market sentiments anticipate a policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting on June 10, amid declining inflation rates.
In a significant development, workers’ remittances surged by 27.9% year-on-year to $2.8 billion in April 2024, according to the State Bank of Pakistan (SBP). Cumulatively, workers’ remittances reached $23.8 billion during the first 10 months of FY24, indicating a 3.5% increase compared to the same period last year.
Internationally, Chinese stocks faced declines due to geopolitical concerns triggered by trade restriction lists issued by the Biden administration and potential new China tariffs. However, Hong Kong shares saw an uptick following reports of China considering exemptions for individual investors from dividend taxes on Hong Kong stocks bought via Stock Connect.
Regionally, MSCI’s Asia ex-Japan stock index rose by 0.65%, while Japan’s Nikkei index witnessed a 0.26% increase.
