PSX reached 103000 index points

The capital market extended last week’s momentum on Monday, driven by a blend of strong economic indicators—particularly a favorable inflation outlook—and expectations of robust corporate earnings in the upcoming results season. This optimism prompted investors to target value stocks.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged further, gaining 1,860.12 points to hit a new intra-day high of 103,217.44.

This represents a 1.84% increase from the previous close of 101,357.32, as the market continued to build on the positive momentum that propelled it past the 100,000-point milestone last week.

“The positive momentum observed since last week and even earlier remains intact, supported by improving macroeconomic indicators,” said Sana Tawfik, Head of Research at Arif Habib Limited.

“With inflation anticipated to drop to its lowest level since April 2018—around 4.7%—and improved market liquidity, the market is seeing a significant boost,” she added.

Investor sentiment also benefited from the receipt of $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Program.

This inflow has bolstered Pakistan’s foreign exchange reserves, bringing them close to $12 billion. Analysts consider this a key factor in reducing economic uncertainty and reinforcing investor confidence.