PSX maintains bullish trend as KSE-100 surges above 110,000 point

Pakistan Stock Exchange (PSX) kickstarted the week with a new milestone as the flagship index KSE-100 touched the 110,000 mark.

Data shared by PSX portal shows index gains 1,044 points, reaching 110,098 points before noon, from the previous close of 109,053.95. This marks the ninth consecutive session of gains for the market.

Last fortnight, the Stock Market witnessed record-breaking gains, with mutual fund buying driving significant growth. KSE-100 soared by a record 7,697 points, the highest-ever point gain in history.

Experts linked the merry run with a cut in interest rates, which had been at record highs earlier in the year. Interest rates, above 20.5% in June 2024, are now nearing 12%, making stocks more attractive to investors.

Investors continue to buy stocks amid improved macroeconomic indicators as a major factor driving investor optimism. Inflation also dropped to 4.9%, its lowest level since 2017, while extending a $3 billion deposit from Saudi Arabia for another year has provided additional support to Pakistan’s economy. Furthermore, Pakistan has successfully converted seven out of 37 MoUs signed with Saudi Arabia into formal contracts worth $560 million, boosting investor confidence.

With these developments, market experts expect the positive trend to continue, with many anticipating further gains in the coming weeks.