KARACHI: Pakistan equities extended their rally on Thursday, with the benchmark index gaining more than 2,900 points during intraday trade, driven by broad-based buying across key sectors, dealers said.
Index Hits 167,782 Intraday
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index was up around 1.8 percent in early trade before extending gains, rising by 2,900-plus points to trade at 167,782 levels, market data showed. The rally reflected continued bullish sentiment in the market, with investors active in banking, fertiliser and energy stocks, according to brokers.
The index had shown volatility in recent sessions but has largely maintained an upward trajectory in May, supported by improved macroeconomic indicators and easing inflation expectations.
Rupee Holds Steady
In the currency market, the rupee also showed slight movement, with the US dollar trading at Rs278.55 in the interbank market after a marginal decline of one paisa. The rupee’s stability has contributed to investor confidence, as currency volatility has historically been a major concern for foreign and domestic investors alike.
Analysts Cite Strong Liquidity, Earnings Expectations
Market participants said the gains in equities were driven by strong liquidity, positive corporate earnings expectations, and renewed investor confidence in the macroeconomic outlook. The government’s progress on fiscal consolidation and the IMF programme’s continuation have also helped improve sentiment.
Caution Amid Global Uncertainty
Analysts, however, cautioned that volatility could persist due to global commodity price fluctuations and external financing pressures, even as Pakistan continues to implement economic reforms under ongoing IMF-backed programmes. They advised investors to remain vigilant, noting that any adverse development in global oil markets or regional geopolitics could impact the rally.
The PSX’s performance in May has been among the strongest in recent months, with the benchmark index recovering significantly from earlier lows. Further gains will depend on sustained improvements in economic fundamentals and clarity on external financing needs.
