On Monday, the Pakistan Stock Exchange (PSX) witnessed a significant boost as the KSE-100 index soared by over 1,500 points. This strong recovery was fueled by record-breaking remittances of $4.1 billion in March, showcasing the crucial role of overseas inflows in stabilizing the local economy.
By midday, the benchmark index had risen by 949 points, reaching 115,802. The upward momentum continued, ending the day at 116,390 points, reflecting a 1.34% increase.
Several market analysts linked this rally to global and local factors. Yousuf M. Farooq of Chase Securities noted that exemptions on tariffs for China had improved global trading morale, adding to the local optimism sparked by remittances. Furthermore, declining expectations of inflation and potential interest rate cuts have created a favorable environment for investors.
Mohammed Sohail of Topline Securities attributed the surge to the unexpectedly high remittances, while Awais Ashraf from AKD Securities pointed out that falling oil prices and weaker fixed-income yields have made equities more appealing. Ashraf also highlighted the anticipation of easing monetary policy, possibly driven by reduced inflation post-Eid.
Overall, market confidence appears to be returning, with investors targeting sectors poised for structural reforms and long-term gains. The latest developments suggest an optimistic outlook for Pakistan’s equity market, underpinned by external inflows and improving economic indicators.
