PSX Surges 1,000+ Points as Bullish Run Gains Strength Amid Declining Inflation and Trade Deficit
The benchmark KSE-100 Shares Index climbed by 1,284.13 points, or 1.24%, reaching a new high of 104,559.07.
The Pakistan Stock Exchange (PSX) continues its impressive bullish trend, with the KSE-100 index surging by over 1,000 points once again.
On Tuesday, December 3, 2024, the index rose by 1,084.31 points, or 1.05%, reaching 104,359.25 points during intra-day trading.
This rally was primarily driven by a significant drop in the annual inflation rate to 4.9% in November, the lowest level since 2017, alongside a narrowing trade deficit of 19% year-over-year to $1.59 billion.
Initially, the market experienced a drop of 449 points early in the trading session but rebounded strongly to achieve an intraday high of 104,445.80 points.
Analysts attribute this resurgence to growing investor optimism regarding potential interest rate cuts and stronger earnings growth in the future. As Yousuf M Farooq from Chase Securities noted, the market is “rerating upwards” in anticipation of these economic improvements.
This bullish momentum follows a period of volatility where the KSE-100 index had previously faced significant declines due to political unrest and profit-taking activities. However, the recent positive economic indicators have restored investor confidence and propelled the market back into a growth trajectory.
