The Pakistan Stock Exchange (PSX) experienced a bullish start to the week as the KSE-100 Index breached the 94,000-point mark during Monday’s intraday trading, setting a new record for the local bourse. By 10:37 AM, the index had surged by 728.34 points (0.78 per cent), reaching 94,020.02 from the previous close of 93,291.68.
The latest rally, fuelled by positive economic indicators and a recent, unexpectedly large interest rate cut, continued a momentum seen over the past week, where the index consistently closed above the 93,000 threshold. Analysts credit this uptick to both supportive monetary policy and investor confidence in the market’s potential.
Yousuf M. Farooq, Director of Research at Chase Securities, attributed the recent trend to increasing asset reallocation by mutual funds from fixed-income investments to equities. “With the total Assets Under Management (AUM) in mutual funds around Rs2.8 trillion, only Rs98 billion is allocated to equity funds. This shift is likely to persist if macroeconomic conditions remain stable,” he explained. Farooq advised retail investors to focus on a diversified portfolio for long-term gains instead of short-term fluctuations.
Another key driver was progress on Pakistan’s potential Reko Diq investment, with Prime Minister Shehbaz Sharif’s Saudi Arabia visit sparking interest in oil and gas stocks, particularly Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Ltd (PPL), said Awais Ashraf, Research Director at AKD Securities.
Ashraf further highlighted ongoing monetary easing amid a disinflationary environment, stating that an improved economic outlook could make equities an increasingly attractive choice for investors.
Pakistan’s performance in global markets is also drawing attention. In the latest MSCI Frontier Market Index review, Pakistan’s weight rose to 4.4 per cent, securing its position as the second most liquid market in the index.
Additionally, the government’s recent Rs339 billion Ijarah Sukuk issuance saw yields decline by 43-104 basis points across various tenors, reflecting strong demand and a favourable outlook for future investments in the country.
