The stock market extended its winning row on Tuesday as the investor mood remained bent by record -breaking transfers and growing optimism over the country’s external bank views.
Pakistan Stock Exchange’s (PSX) Benchmark KSE-100 index hit an intraday height of 117,362.22, an increase of 972.19 points or 0.84%, from the previous end of 116,390.03, while the session low was registered at 116,645.68, which still reflects a gain of 255.65 points or 0.22%.
By explaining the reason behind the positive mood, the leader of research at Arif Habib Limited, Sana Tawfik, said: “The positive market today is mainly due to the update given yesterday on the financial front of the Governor of the State Bank, where transfer figures of $ 4.1 billion were shared.”
“Then there was news that Fitch is likely to upgrade our assessment. The governor also said yesterday that this month’s ongoing account is in profits and that the whole year will also most likely to close in profits,” she added.
The rally followed optimistic comments from the State Bank of Pakistan (SBP) Governor Jameel Ahmad, who on Monday expressed hope that the country’s currency reserves could reach $ 14 billion in June 2025.
Talking to Pakinomist Newshe said that $ 2 billion dollars in external payments was due to the next two and a half months, while $ 4-5 billion in expected influx over the same period could lead to a net addition of $ 2-3 billion in reserves.
Governor Ahmad also expected the total transfers to hit a highlight of all the time of $ 38 billion at the end of the current financial year (FY25), up from $ 30.25 billion in FY24. The central bank attributed this growth to increased use of formal channels, regulatory efforts to stabilize the exchange market and increasing confidence in banking systems.
SBP’s data released Monday showed overseas Pakistanis sent $ 4.1 billion home alone in March, the highest ever in a single month. This marked an increase of 37% year to year and an increase of 29.8% compared to February. Cumulative transfers for the first nine months of FY25 increased by 33.2% to $ 28 billion.
Investor mood was further strengthened by reports that the international credit rating agency Fitch may upgrade Pakistan’s assessment in the coming days. According to the top official sources, the agency is considering moving the country’s assessment from CCC+ to B, reflecting improved macroeconomic stability and a reduced risk of default.
On Monday, the KSE-100 index had already placed a strong rebound, which rose 1,536.70 points, or 1.34%, to close at 116,390.03, which turned the previous week’s loss and amplifies the optimism of the market.
