KARACHI: The Pakistan Stock Exchange (PSX) maintained its bullish momentum on Monday, fueled by optimism surrounding corporate earnings and signs of improving macroeconomic stability. Investors pushed the KSE-100 Index to fresh highs, reaching an intraday peak of 142,252.41 with a gain of 1,217.43 points (0.86%). The day’s low stood at 141,034.98, still reflecting a notable rise from the previous close.
Ahsan Mehanti, CEO of Arif Habib Commodities, attributed the rally to strong financial results, rupee appreciation, and softer inflation data, all of which supported investor confidence ahead of key earnings announcements. Analysts predict this upward trend will likely continue, backed by progress on the circular debt issue and resilient economic indicators.
Despite holding the interest rate at 11%, the Monetary Policy Committee's decision came amidst rising inflation, which increased to 4.1% in July from 3.2% in June. The Sensitive Price Index (SPI), however, showed a year-on-year decline of 0.9%.
The rupee appreciated 0.26% week-on-week, closing at Rs282.72 per dollar, supported by government crackdowns on the black market. Additionally, the FBR surpassed its July revenue target by Rs7 billion, collecting Rs755 billion.
However, the SBP reported a $153 million drop in foreign reserves, now at $14.3 billion, while the reversal of electricity subsidies added inflationary pressure.
