Bulls return to PSX over record remittances as shares climb 1,500 points
Bulls returned to the Pakistan Stock Exchange (PSX) on Monday as shares climbed more than 1,500 points as remittances hit record $4.1 billion for the month of March.
The benchmark KSE-100 index climbed 949.56, or 0.83 per cent, to stand at 115,802.89 from the previous close of 114,853.33 at 12:47pm.
At 2:50pm, the index stood at 116,385.93, up by 1,532.60 or 1.33pc, from the last close.
Finally, the index closed at 116,390.03, up by 1,536.70 or 1.34, from the last close.
Yousuf M. Farooq, director research at Chase Securities, said, “The market took a breather today, buoyed by the weekend announcement of tariff exemptions for China, which helped lift global sentiment.”
Locally, he highlighted that the receipt of over $4 billion in remittances for March propelled market sentiment.
“Additionally, inflation expectations have declined over the past month, leading an increasing number of participants to anticipate interest rate cuts in the near term,” he noted.
“A reduction in interest rates could drive an upward rerating in equities.”
Mohammed Sohail, chief executive of Topline Securities, also attributed the bullish momentum to better-than-expected remittances.
“Moreover — with regional markets up today — local investors have also started taking fresh positions,” he added.
Awais Ashraf, director research at AKD Securities, said, “Investor focus has returned to improving fundamentals following Trump’s pause on reciprocal tariffs and exemptions on telecom-related imports.”
Ashraf also attributed the upward trajectory to remittances for March.
Additionally, he noted that an “expected sub-1.0pc inflation in April, likely to be driven by post-Eid price easing amid falling oil prices, have created room for potential rate cuts”.
“With falling fixed income yields and softer commodity prices, equities are likely to stay in focus,” he stated. “We recommend targeting stocks poised to benefit from structural reforms beyond beneficiary of monetary easing and commodity prices.”