Market Surges on Positive Economic Signals
The Pakistan Stock Exchange (PSX) continued its upward momentum on Thursday, powered by strong foreign exchange reserves and robust mutual fund investments. The KSE-100 Index climbed by 2,285.53 points or 1.68%, settling at 138,665.49 points, up from the previous close of 136,379.96.
🔹 Mutual Funds Drive Rally
According to investment analyst AAH Soomro, over $50 million has been poured into equity markets by mutual funds following the government’s budget decision to increase tax on money market returns. He noted:
“This liquidity-fueled rally is expected to continue, likely pushing the index beyond the 140,000 mark.”
🔹 Intraday Performance Highlights
- Day’s High: 138,943.47 points (up 2,563.51 / 1.88%)
- Day’s Low: 136,674.98 points (up 295.02 / 0.22%)
🔹 Forex Reserves Cross $14.5 Billion
Investor optimism was fueled by the State Bank of Pakistan’s (SBP) updated data showing a jump in foreign exchange reserves to $14.51 billion at the end of FY2025. This exceeds the IMF’s target of $13.9 billion, up from $9.39 billion on June 30, 2024.
This rise came from:
- $3.10 billion in commercial loans
- Over $500 million from multilateral lenders
- $3.4 billion in Chinese loan rollovers, including:
- $1.3 billion in refinanced commercial debt
- $2.1 billion that had been part of reserves since 2022
🔹 Recent Market Trend
The market also recorded solid gains on Wednesday, when the KSE-100 Index added 440.1 points, rising from 135,939.87 to 136,379.96.
- Wednesday High: 137,232.11 points
- Wednesday Low: 135,542.89 points
đź“ť Conclusion
With mutual funds shifting towards equities and forex reserves exceeding targets, PSX is gaining strong momentum. If the current trend continues, analysts believe the KSE-100 Index could break above the 140,000 level in the coming sessions, keeping investor sentiment high.
