The Pakistan Stock Exchange (PSX) kicked off the week on a bullish note, with the benchmark KSE-100 index gaining over 900 points during intra-day trading on Monday, hovering around 118,295 points. This rally follows Friday’s close at 117,315, where the market had already gained 414 points.
Ongoing Rally Reflects Investor Confidence
The bullish trend has dominated the PSX over the past week. On Thursday, the index touched 117,013 points before settling at 116,901, a robust 801-point gain. Tuesday also saw healthy movement, with the index closing at 116,775, gaining 385 points despite a temporary dip on Wednesday.
Positive Economic Sentiment Driving the Rally
Several factors have contributed to the stock market’s strong performance:
- Tariff Relief by the US: Markets worldwide stabilized after US President Donald Trump announced a 90-day reprieve on proposed tariffs, easing global economic tensions and allowing Pakistani stocks to recover.
- Government’s Economic Narrative: Prime Minister Shehbaz Sharif’s successful diplomatic visit to Belarus and ongoing economic diplomacy have bolstered investor sentiment.
- Strong Remittance Inflows: State Bank of Pakistan (SBP) Governor Jameel Ahmad revealed that Pakistan received a record $28.07 billion in remittances during the first nine months of FY25 — a 33% increase year-on-year. March alone brought in a record $4.1 billion, with significant contributions from:
- Saudi Arabia: $987 million
- UAE: $842 million
- UK: $684 million
- US: $419 million
- Fitch Ratings Upgrade: Global credit agency Fitch upgraded Pakistan’s rating to ‘B-’ from ‘CCC+’, citing reduced budget deficits and structural reforms aligned with the IMF programme.
Market Correction and Volatility
Despite the ongoing bullish run, Wednesday saw a minor correction with the KSE-100 index dropping 755 points to close at 116,020, representing a 0.65% decline. Analysts consider this a temporary pullback amid a generally upward trajectory.
