Pakistan Stock Exchange rebounds on positive economic indicators

The Pakistan Stock Exchange (PSX) witnessed a significant rebound, breaking a three-day losing streak as the benchmark KSE-100 Index surged by 1,244.45 points (+1.76 percent) to close at 71,902.09 points. This positive momentum was fueled by lower inflation figures and developments in the privatization sector.

The Consumer Price Index (CPI) based inflation rate hit a 23-month low of 17.3 percent year-on-year in April, marking the lowest reading in almost two years. Additionally, the Sensitive Price Indicator (SPI) showed a consistent one percent decrease for the third consecutive week, indicating a positive trend in inflation control.

Investor interest was notably observed in Pakistan International Airlines (PIA) stocks following reports of potential buyers eyeing a majority stake in the airline. This move aligns with the government's plan to privatize a stake in PIA, ranging from 51 percent to 100 percent, as part of IMF-driven reforms.

Furthermore, the United States emphasized the importance of economic reforms in Pakistan, particularly through trade and investment ties. This endorsement from the US spokesperson underlines the significance of stabilizing Pakistan's economy, including efforts to secure an agreement with the IMF.

The market performance was robust, with the KSE All Share Index gaining 769.67 points (+1.64 percent) and the KMI All Share Islamic Index rising by 666.83 points (+1.98 percent). Notable sectors driving the market upwards included oil & gas exploration companies, commercial banks, cement, and power distribution companies.

In conclusion, the PSX's positive trajectory, supported by favorable economic indicators and investor sentiment, reflects a promising outlook for Pakistan's financial markets amidst ongoing reforms and strategic developments.