On January 31, 2025, the Pakistan Stock Exchange (PSX) experienced a significant surge, with the benchmark KSE-100 index climbing by 1,096 points, or 0.97%, to reach 114,302.40 points. This upward trend continued, closing at 114,255.72 points, marking a 0.93% increase from the previous close.
Analysts attribute this bullish momentum to several factors:
•Economic Indicators: The year-on-year Sensitive Price Index (SPI) declined to 0.44%, and the Consumer Price Index (CPI) is expected to fall below 3%, suggesting a potential for single-digit interest rates in 2025.
•Investor Sentiment: Optimism surrounding corporate earnings and commitments from a U.S. investor delegation have bolstered market confidence.Â
Despite these positive developments, experts caution that risks such as a sharp rise in imports or excessive government spending could impact the external account and the stock market. Attention is now focused on the upcoming IMF review in March, which could influence future market dynamics.
Overall, the PSX’s recent performance reflects a resilient market responding to both domestic economic indicators and international investment interest.
