The Pakistan Stock Exchange (PSX) extended its bullish run on Wednesday, driven by strong foreign investment inflows, rising global crude oil prices, and increased optimism over monetary easing by the State Bank of Pakistan (SBP).
The benchmark KSE-100 Index gained 253.96 points (0.22%) to close at 113,342.43, building on the momentum from Tuesday’s sharp recovery.
Key Drivers of the Rally:
- World Bank’s $40 Billion Investment Pledge:
- The World Bank (WB) has pledged $40 billion for Pakistan’s development, boosting investor confidence.
- This includes $20 billion for private sector investment via the International Finance Corporation (IFC) and $20 billion for public sector development, including health, education, and infrastructure.
- IMF Review & Economic Outlook:
- Investors are closely watching the IMF’s next review on March 4 under the $7 billion Extended Fund Facility (EFF).
- The IMF is expected to release a $1 billion tranche in April 2025.
- Pakistan has received $5.5 billion in foreign loans so far in FY25, but still needs $19 billion in total inflows.
- IT Sector’s Robust Performance:
- IT exports surged 18% YoY in January 2025, reaching $313 million, despite a 10% monthly decline from December 2024.
- Cumulative IT exports for July–January FY25 rose 27% YoY to $2.18 billion.
- Sector-Wise Market Performance:
- Cement stocks surged due to falling coal prices and increased infrastructure projects.
- Banking stocks saw gains ahead of earnings reports.
- Fertilizer & export-driven stocks also performed well amid expectations of further policy easing by the SBP.
Recent Market Trends:
- Tuesday: The KSE-100 Index jumped 1,344.95 points (1.2%) to 113,088.48, rebounding from a four-session losing streak.
- Wednesday: The market built on these gains, reaching an intraday high of 114,029.75 before settling at 113,342.43.
With global oil prices rising and investor confidence strengthening, market analysts expect continued stability, barring any macroeconomic shocks or policy surprises.
