Stock market soars 1,000 points even before trading kicks off

KARACHI: The Pakistan Stock Exchange (PSX) gained over 1,000 points instantly as the market opened on Monday morning. Moments into trading, the gains have increased to more than 1,400 points.

The benchmark KSE-100 index closed at 114,301.80 points on Friday, marking yet another milestone for the stock market. Before 10 AM on Monday, the trading had soared the index to 115,750.90 points. As the year comes to a close, the PSX also has a success story to share. In addition to the impressive rally being seen for the past several weeks, the calendar year 2024 has also seen seven new listings.

These initial public offers (IPOs) after a long period of turmoil, uncertainty and low investor confidence may very well be an indicator of overall improvement in the country’s investment climate. The improving macroeconomic stability under the latest International Monetary Fund’s (IMF) program, inflow of foreign assistance for climate and transport sector, and resulting increase in foreign exchange reserves are all lending strength to the market.

Also read: SBP expected to cut policy rate by 200bps on December 16

Market analysts are of the opinion that the stock market will continue to show strength and growth, and is likely to reach the levels of 120,000 to 127,000 points by the end of the calendar year 2025. More immediately, the central bank is also expected to slash the monetary policy rate – a move that the State Bank of Pakistan (SBP) has been avoiding to keep inflationary pressures in check.

For now, the PSX is following through with this prediction. Close to 10 AM on Monday, the index looked like this: