Stock market expected to continue bullish run, at least until year-end

KARACHI: On Monday, the Pakistan Stock Exchange (PSX), yet again, touched the highest ever 94,995.67 points mark, closing with 232 points improvement. Meanwhile, Bloomberg has predicted that the benchmark KSE-100 index will continue the bullish run by the end of the calendar year.

The Bloomberg article predicts that 2025 will bring even more gains for the stock market, as the country’s economy begins to react to the International Monetary Fund’s (IMF) program. The article quotes Topline Securities Ltd as saying that the KSE-100 index will increase to 127,000 points by December 2025, while Arif Habib Ltd predicts this hike to be 120,000 points.

Pakistan’s current account surplus of $349 million in October, overall surging forex reserves, expectations of privatisation of state-owned enterprises (SOEs), as well as independent power producers (IPP) reforms have all contributed to the rally witnessed in the past few weeks.

Going forward, the incoming foreign investments, improving trading volumes, State Bank of Pakistan’s (SBP) lower policy rate and the government’s decision against a mini-budget are expected to keep the momentum strong until December 2024.

Today (Tuesday), the index opens at all-time high of 94,995.67 points and is likely to add more green movement throughout the trading day.

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