PSX kicks off week with over 1,000-point surge

The stock market started the new week with a sharp upswing, as investor confidence remained buoyant due to strong economic developments, including a record current account surplus, an upgrade in Pakistan’s credit rating by Fitch, and reduced pressure on external financing.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged by 1,067.80 points, or 0.91%, to close at 118,383.38, up from the previous close of 117,315.58. The index touched an intraday high of 118,640.70, representing a gain of 1,325.12 points, or 1.13%, while the session’s low was recorded at 117,712.70, still reflecting a gain of 397.12 points (0.34%).

Momentum from last week’s rally continued as expectations of an interest rate cut by the State Bank of Pakistan (SBP), falling global oil prices, and progress on circular debt reforms kept buying interest high across sectors.

According to analysts, there was no single trigger for Monday’s rally. “Just the broader carry over of bullish sentiment since last week when remittances, rating upgrade and current account numbers fuelled the rally. Expect momentum to continue for a couple of weeks until SBP probably cuts interest rate by 50 bps at least,” said independent investment and economic analyst AAH Soomro.

Momentum from last week’s rally continued as expectations of an interest rate cut by the State Bank of Pakistan (SBP), falling global oil prices, and progress on circular debt reforms kept buying interest high across sectors.

The positive trajectory was supported by strong macroeconomic cues from the previous week. A record $1.2 billion current account surplus for March 2025 served as a key driver, marking the highest monthly surplus in Pakistan’s history and reflecting a significant improvement in the country’s external account.

Investor confidence was also bolstered by recent progress in resolving the circular debt crisis, with a Rs1.275 trillion rescue package finalised by a consortium of leading banks. The package has reinforced expectations for long-awaited structural reforms in the power sector.

The SBP further revised its year-end foreign exchange reserves forecast upward to $14 billion, citing improved inflows and fiscal discipline. Positive developments on the external financing front included Kuwait’s decision to extend its oil credit facility to Pakistan for another two years, easing pressure on energy-related payments.

Meanwhile, the government adjusted the petroleum levy by Rs8.02/litre on petrol and Rs7.01/litre on diesel to support infrastructure development, while benefitting from lower global oil prices.

On the fiscal side, the SBP’s successful auction of Market Treasury Bills (T-bills) raised Rs965 billion, exceeding the Rs850 billion target, with yields largely stable. The central bank’s foreign reserves also rose by $127 million to $10.7 billion.

The result season is expected to further drive activity across key sectors, particularly where companies are projected to post strong earnings.

The latest session builds on last week’s performance when the KSE-100 index gained 2,462 points (+2.1% week-on-week) to close at a record high of 117,315.58.