Stocks maintained its history-making upward momentum on Tuesday, building on Monday\u2019s record gains as economic optimism and cooling inflation continued to drive investor confidence. The market’s strong performance reflects the impact of stabilising macroeconomic indicators and expectations of further monetary easing. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index surged further, adding 1,086.3 points, or 0.48%, to hit a new intraday high of 104,361.24, with investor sentiment buoyed by a record drop in inflation and hopes for continued economic reforms. The day\u2019s trading began on a ceremonial note as Federal Minister for Planning Ahsan Iqbal rang the traditional gong to commence trading at the Pakistan Stock Exchange. During the event, Ahsan Iqbal highlighted the government\u2019s commitment to economic stability and long-term growth. \u201cCrossing the 100,000 mark in the 100-Index showcases Pakistan\u2019s potential to the world,\u201d he said. He recalled past milestones, saying, \u201cIn three years, we attracted $25 billion in investment from China and controlled load-shedding.\u201d He also noted that PricewaterhouseCoopers had projected Pakistan as a developing nation until 2030. Addressing Pakistan\u2019s recent challenges, Iqbal observed, \u201cIn April 2022, when we took charge, Pakistan was on the verge of default. The choice was to save politics or the state.\u201d He credited the government\u2019s tough decisions, such as increasing energy prices and delaying elections, for stabilising the economy. \u201cInflation has dropped from 38% to below 5% in two years, and the stock market has soared from 30,000 to 100,000 points,\u201d he noted, highlighting the PSX as one of the most successful markets globally. PSX Chairperson Dr Shamshad Akhtar highlighted the significance of Pakistan\u2019s robust capital market and its recent achievements. \u201cAhsan Iqbal has been a voice for developing countries at the United Nations,\u201d remarked Dr Shamshad Akhtar, who praised the federal minister\u2019s contributions to global and national economic progress. She noted that the Pakistan Stock Exchange remains one of the best-performing markets in the region and the world, driven by strong economic indicators and policies. Dr Akhtar emphasised the role of the government in fostering market growth through targeted programs. \u201cCrossing 100,000 points last week has brought renewed enthusiasm to the market,\u201d she said, adding that the PSX\u2019s ability to finance long-term developmental projects makes it a critical asset for Pakistan\u2019s economic future. Reflecting on the market\u2019s performance, Dr Akhtar pointed out that the PSX has delivered a 7% return in dollar terms over the past five years. She also underscored the importance of partnerships with the Chinese consortium in supporting the exchange\u2019s growth journey, asserting that crossing the 100,000-point milestone in the KSE-100 Index highlights Pakistan\u2019s potential to the world. A significant factor in today\u2019s rally was Prime Minister Shehbaz Sharif’s optimism regarding a potential reduction in the key policy rate by the State Bank of Pakistan\u2019s (SBP) Monetary Policy Committee (MPC) in its upcoming meeting, which analysts believe will provide further impetus to the equity markets. Addressing a federal cabinet session on Monday, expressed optimism about a further reduction in the SBP\u2019s policy rate. the premier highlighted the 4.9% inflation rate recorded in November \u2014 the lowest in six-and-a-half years \u2014 as a game-changer for the country\u2019s economic landscape. He stressed that such a decline not only alleviates the financial burden on the masses but also paves the way for economic growth. “The decrease in inflation not only reduces the financial burden on the masses but also opens avenues for economic growth,” he said. The premier added that achieving stability must now transition into fostering GDP growth, exports, industrial development, and job creation. He attributed the development to effective economic policies and expressed optimism about a further reduction in the SBP\u2019s policy rate. Inflation data released by the Pakistan Bureau of Statistics (PBS) showed a significant slowdown, beating forecasts of 5.8%-6.8%. \u201cIt is beyond imagination,\u201d said the Prime Minister, recalling inflation levels of 3.5% during the previous tenure of the Pakistan Muslim League-Nawaz (PML-N). Analysts note that the cooling price pressures reflect a mix of improved monetary measures and stabilising economic fundamentals and view this as a clear signal of easing price pressures, which could prompt the SBP to cut interest rates further, creating a more conducive environment for equity markets. Monday\u2019s session set the tone for today\u2019s rally, with the KSE-100 gaining 1,917.62 points to close at a record 103,274.94. Sectors like banking, technology, and oil and gas exploration led the gains last, with banking stocks benefitting significantly from recent regulatory changes, such as the removal of the Minimum Deposit Rate (MDR) requirement for corporate deposits. As the PSX continues to explore unprecedented territory, market analysts anticipate sustained growth, supported by consistent policy measures, stabilised external accounts, and reduced costs of doing business.<\/p>\n","protected":false},"excerpt":{"rendered":"
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