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Friday, February 28, 2025

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Investor Confidence Soars as PSX Sees Sustained Bullish Momentum

The Pakistan Stock Exchange (PSX) surged on Friday, extending its bullish momentum as investor confidence rose in response to corporate earnings projections and improving macroeconomic stability.

Market Performance

The session began with a powerful rally driven by aggressive buying, which pushed the KSE-100 Index upward throughout the day. The benchmark index climbed 1,864.76 points (1.65%), reaching an intraday high of 115,071.16. The lowest level recorded was 113,692.87.

Factors Behind the Rally

Market analysts attributed the rally to optimism surrounding upcoming financial earnings reports, expected to show strong profitability across various sectors. Investors also positioned themselves with the expectation of continued monetary easing by the State Bank of Pakistan (SBP) following recent policy rate cuts.

Foreign Exchange Reserves Concern

Despite the market’s strong performance, concerns linger over Pakistan’s foreign exchange reserves. The SBP reported a decline of $76 million in reserves, bringing the total to $11.372 billion as of January 24. The decline was attributed to external debt repayments, which continue to exert pressure on the country’s financial position.

Total foreign exchange reserves dropped by $137 million to $16.052 billion, with commercial banks’ reserves falling by $61 million to $4.68 billion. This underscores the ongoing external financing challenges, with inflows failing to offset debt servicing obligations.

Looking Ahead

The bullish momentum from Friday follows a major rebound in the previous session, where the KSE-100 Index gained 1,719.04 points (1.54%), closing at 113,206.40. Analysts expect continued volatility as investors keep a close eye on corporate earnings reports and key macroeconomic developments.

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