Strong corporate profits and a calmer regional outlook drove dramatic stock rallies at the Pakistan Stock Exchange (PSX), sending the KSE-100 index jumping by nearly 900 points on Monday.
By 10:05 am, the index had surged 941.79 points, or 0.82%, reaching 116,411.13. Analysts credited the boost to solid quarterly performances by key listed companies, which reassured investors following recent market jitters.
Awais Ashraf of AKD Securities claims that the market mood was lifted in large part by the announcement of strong earnings by major firms. The absence of any major fallout after the Pahalgam incident between Pakistan and India also helped restore investor confidence.
Chase Securities’ Yousuf M. Farooq pointed out that macroeconomic fundamentals were also favorable: Pakistan’s current account remains manageable, inflation has dropped significantly, and the real effective exchange rate sits close to 101. He added that the possibility of an upcoming interest rate cut could further enhance market valuations.
Mohammed Sohail, CEO of Topline Securities, stressed that the cooling of cross-border tensions was crucial in helping the stock market recover from last week’s declines, which had been fueled by fears of escalating conflict.
While the latest rally is encouraging, experts warn that maintaining this momentum will depend heavily on continued diplomatic stability between Pakistan and India.
