The rise in the index was attributed to improvements in economic metrics, particularly in foreign exchange reserves and inflation trajectory. These factors are raising expectations of monetary easing, which is seen as a catalyst for equities. Sectors such as cement and textile, which benefit from leverage, have been driving the rally.
Experts predict that consumer inflation will decline following a record current account surplus. This has increased optimism among investors, leading to expectations of interest rate cuts in the near future.
The previous day, stocks closed slightly lower in mixed trade. Early gains in the cement sector were offset by profit-taking later in the session. The KSE 100-share index fell by 74.06 points, or 0.10%, to close at 71,359.41 points.
Analysts attributed the negative close to weak global crude oil prices, reports of refinery shutdowns, and expectations of a prudent policy announcement from the State Bank of Pakistan ahead of upcoming IMF loan talks. Other factors included the withdrawal of Shanghai Electric Power’s acquisition offer for KE, uncertainty in Pakistan-US relations, and a weak rupee.
