Bulls dominated the stock market on Thursday, fueled by sustained market momentum, improving economic indicators, and easing regional tensions, collectively boosting investor confidence across various sectors.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index concluded the trading day at an all-time high of 119,961.91 points, marking an increase of 1,425.39 points, or 1.20%, compared to the previous closing figure of 118,536.52.
During the trading session, the index reached an intraday peak of 119,990.30 points, reflecting a gain of 1,453.78 points, or 1.22%, as robust institutional interest underpinned the day’s performance.
“Refinery stocks are up today following news of a Rs34 billion compensation package for the sector. We’ve already been observing some momentum, particularly with talk of the IMF disbursement and the geopolitical ceasefire,” commented Sana Tawfik, Head of Research at Arif Habib Limited.
“There’s also discussion of an increase in OMC margins, which has caused movement in that sector too. Yesterday, Barron’s labeled Pakistan a ‘macroeconomic miracle’ in a positive report, and all these factors are contributing to the positive sentiment.”
On Wednesday evening, the State Bank of Pakistan (SBP) officially confirmed the receipt of the second IMF tranche amounting to $1.023 billion under the Extended Fund Facility (EFF). This inflow will be reflected in the country’s reserves for the week ending May 16th.
International financial media has also acknowledged Pakistan’s economic recovery. US publication Barron’s highlighted a “macroeconomic miracle,” pointing to the significant drop in inflation from nearly 40% to near zero, the doubling of Eurobond prices, and the tripling of the KSE-100 Index over the past two years, even amidst tensions with India.
Meanwhile, US President Donald Trump stated on Monday that the United States “stopped a nuclear war” between India and Pakistan, noting Washington’s role in brokering the ceasefire between the two rival nations. He announced intentions to increase trade with both countries and offered to work towards a long-term resolution on the Kashmir issue.
Earlier this month, the SBP surprised markets by reducing the benchmark interest rate by 100 basis points to 11%. The Monetary Policy Committee cited significant declines in electricity tariffs and food prices as key drivers behind the disinflation trend.
The KSE-100 had closed nearly flat on Wednesday, edging down by 39.36 points, or 0.03%, to 118,536.52, after three consecutive sessions of strong gains. During that session, the index had reached a high of 119,460.54 and a low of 118,148.65.
