PSX surges with 700-point gain amid positive market sentiments

The Pakistan Stock Exchange witnessed a robust uptrend as the KSE-100 index advanced by 712.53 points, closing at 73,370.58 points on Friday, a near 1% increase from its last closing.

Experts remarked that the market buzz was largely due to anticipations of a 15% inflation rate for May and a potential dip in interest rates in the coming year, which revitalized interest in cyclical stocks. They said that expectations for monetary policy easing are escalating, evident from the real interest rates at about +5% and a stable external account and also noted an increased activity in traditionally underperforming sectors like cement from both domestic and international investors.

It was also observed that the market sentiment was also buoyed by projections of a quicker-than-expected decline in inflation, with investors gravitating towards companies likely to benefit from reduced interest rates.

The market recovery was also supported by positive developments a day earlier, breaking a three-day downturn through selective value-hunting, which left the market in positive territory at the close of trading.

Further boosting the market were expectations of structural reforms backed by the World Bank, ongoing considerations for privatizing struggling state-owned enterprises, anticipation of new IMF loan discussions, and a prospective visit by the Saudi crown prince to finalize investment agreements under the Special Investment Facilitation Council.