The Pakistan Stock Exchange (PSX) continued its record-breaking momentum on Tuesday, with the KSE-100 index nearing 96,000 points during intraday trade. The index surged by 930.72 points (0.98%) to an intraday high of 95,926.39, buoyed by strong macroeconomic indicators and policy clarity from Finance Minister Mohammad Aurangzeb.
Investors were reassured by the minister’s statement that the recent IMF visit posed no risk to Pakistan’s $7 billion loan programme, with no new taxes discussed for the salaried or manufacturing sectors. Market sentiment was further strengthened by robust performances in key sectors, including telecommunications, banking, and energy.
The energy sector received a boost as the government announced a landmark policy allowing exploration firms to sell 35% of future gas discoveries to private players. Meanwhile, the technology sector remained strong, with ICT export remittances rising by 34.9% year-on-year to $1.206 billion from July to October 2024.
Analysts highlighted encouraging economic trends such as a $349 million current account surplus in October, driven by a 24% year-on-year rise in remittances. Foreign exchange reserves also hit a two-year high, with projections to exceed $11 billion. Foreign direct investment grew 32% year-on-year to $904.3 million from July-October 2024.
Positive investor sentiment fueled a 20% rally in the KSE-100 index since September, with liquidity shifting from fixed-income securities to equities. Strong corporate earnings, structural reforms, and the IMF’s acknowledgment of tax-to-GDP improvements bolstered confidence.
Market experts expect further gains, citing reduced political noise, ongoing reforms, and foreign investment inflows as key drivers.
