Bullish momentum persisted at the Pakistan Stock Exchange (PSX) as investors celebrated developments in the formation of a new government, leading the benchmark KSE-100 to surge over 600 points during Monday’s trading.
By 12:10 pm, the benchmark index stood at 65,937.81, marking a notable increase of 612.13 points or 0.94%. Earlier in the day, the index surpassed the 66,000 level.
Positive market sentiment was driven by buying activities in index-heavy shares, with Engro, OGDC, PPL, and SNGP showing gains.
Analysts attributed the buying spree to a reduction in political volatility after the general elections last month, culminating in the election of Shehbaz Sharif as the Prime Minister of Pakistan for a second term on Sunday, securing 201 votes.
Furthermore, a lower headline inflation reading for February contributed to the optimism that Pakistan’s central bank might initiate its monetary easing cycle sooner than anticipated.
In the preceding week, the PSX witnessed a bullish trend fueled by robust buying from both local and foreign investors, coupled with institutional support, following a relaxation in the country’s political situation. The benchmark KSE-100 index experienced a significant surge of 2,509.87 points on a week-on-week basis, surpassing the psychological 65,000-level to close at 65,325.69 points.
On the global front, Asian share markets demonstrated strength on Monday, with the Nikkei reaching a new high. Investors braced themselves for a week filled with central bank events and major data releases that could refine market expectations regarding the timing of interest rate adjustments.
All eyes are on Federal Reserve Chair Jerome Powell, set to testify before lawmakers on Wednesday and Thursday, with analysts expecting a cautious approach to policy amid recent surprises in inflation. The upcoming February payrolls report on Friday could also influence market dynamics, with forecasts suggesting a steady rise of 200,000 after January’s impressive jump of 353,000.
