Pakistan Stock Exchange Rises Over 500 Points

The Pakistan Stock Exchange (PSX) saw a strong gain on Thursday, with the KSE-100 Index rising by more than 500 points in intraday trading. By 11 AM, the benchmark index climbed 548.58 points, or 0.59%, reaching 93,904.00 from the previous close of 93,355.42.

This positive trend follows a slight recovery in the PSX on Wednesday, when the index rose by 131 points after a steep decline on Tuesday. Market analysts say investor interest is growing in equities due to lower returns in fixed-income investments and signs of stabilizing economic indicators.

Yousuf M. Farooq, Director of Research at Chase Securities, noted that declining returns from fixed-income mutual funds have pushed investors to explore equities. “Some tax adjustments might still be necessary to meet targets, but key economic indicators are stable, and sectors like automobiles, fast-moving consumer goods (FMCGs), and real estate are showing promising sales,” Farooq added.

Despite the upward momentum, Farooq advised caution, reminding investors that large rallies can still experience short-term corrections. “Stocks are meant for the long term and shouldn’t be bought with funds needed in the short term,” he cautioned.

Awais Ashraf, Director of Research at AKD Securities, agreed, highlighting the strong valuations in the KSE-100 amid favorable market conditions. “With fiscal improvements and a stable current account, Pakistan is better positioned to negotiate flexible terms with the IMF,” Ashraf stated. He also mentioned that lower commodity prices and stronger economic stability are key drivers behind the market rebound.

As investor confidence builds, analysts continue to recommend a cautious approach, reminding traders of the potential for market corrections within broader upward trends.