KARACHI: The Pakistan Stock Exchange (PSX) achieved an unprecedented feat as the benchmark KSE-100 index surpasses the 70,000 mark on Tuesday. The historic milestone was propelled by several factors, including burgeoning optimism surrounding a potential new International Monetary Fund (IMF) agreement.
During the intraday trading session, the KSE-100 index surged by an impressive 694.73 points or 1%, culminating at 70,314.71 points, a significant uptick from its preceding close of 69,619.98 points. Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, noted that market sentiment has been buoyed by prospects of an imminent IMF deal, underpinning investor confidence and driving the index to new heights.
Furthermore, the surge in remittances from overseas workers played a key role in bolstering market dynamics. According to data released by the State Bank of Pakistan (SBP), remittances surged by a remarkable 31.27% month-on-month (MoM) to $2.95 billion in March. This surge is attributed to the traditional Ramadan inflows, where expatriates tend to remit additional funds for Eid expenses.
Arif Habib Limited (AHL) underscored the significance of this surge, noting a 16% year-on-year (YoY) increase in remittances, with March 2024 witnessing the highest monthly inflow since April 2022, amounting to $3 billion compared to $2.5 billion in March 2023.
The surge in remittances, coupled with the anticipation of favorable corporate results for the March quarter, has infused the market with renewed vigor, underscoring the resilience of Pakistan’s financial sector amidst global economic flux. As investors remain optimistic about the trajectory of the market, analysts foresee a promising outlook ahead, contingent upon sustained economic reforms and conducive policies.
