Bullish Rally at PSX Driven by Record Remittances and Positive Sentiment
Key Points:
- Market Performance:
- The Pakistan Stock Exchange (PSX) witnessed a strong bullish trend on Monday, with the benchmark KSE-100 index surging by 1,536.70 points (1.34%) to close at 116,390.03.
- During intraday trading, the index peaked at 116,385.93, reflecting a gain of 1,532.60 points (1.33%).
- Driving Factors:
- Record Remittances: Inflows hit an all-time high of $4.1 billion in March, boosting investor confidence.
- Tariff Exemptions for China: The government’s decision to exempt certain imports from tariffs improved market sentiment.
- Inflation & Rate Cut Expectations: Declining inflation projections have raised hopes of an imminent interest rate cut, further supporting equities.
- Regional Market Influence: Positive trends in global and regional markets encouraged local investors to take fresh positions.
- Analyst Insights:
- Yousuf M. Farooq (Chase Securities): Highlighted the impact of remittances and easing inflation, suggesting potential equity gains if rates decline.
- Mohammed Sohail (Topline Securities): Attributed the rally to strong remittance figures and improved regional market conditions.
- Awais Ashraf (AKD Securities): Noted that falling oil prices and expected low April inflation (below 1%) could pave the way for monetary easing, benefiting equities.
The PSX’s upward momentum was fueled by record remittances, favorable policy measures, and expectations of monetary easing. With inflation easing and global markets stabilizing, analysts anticipate sustained investor interest in equities, particularly in sectors poised to benefit from structural reforms. The market’s performance reflects growing optimism about Pakistan’s economic outlook.
