PSX: Pakistan stock market surged to yet another record high, driven by positive economic data and expectations of monetary easing. Monetary easing is a key driver of economic activity, which is closely linked to business earnings.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surged by an incredible 869.77 points, or 1.30%, to close at 67,756.03. Following indications of an increase in both domestic and foreign cement dispatches for March, investors poured a lot of cash into the cement and steel industries on Wednesday, making the cyclic sector the star of the show.
Nonetheless, industries including commercial banking, transportation, and technology and communication still continued to draw attention from investors.
Furthermore, the government’s intentions to privatize, particularly the proposal to sell off certain State-Owned Enterprises (SOEs), gave the market hope because it was widely believed that these businesses would become more profitable and efficient under private control.
It should be mentioned that the Privatization Commission invited expressions of interest (EOIs) from possible bidders on Tuesday, paving the way for the sale of Pakistan International Airlines (PIA).
According to figures released by the Pakistan Bureau of Statistics (PBS), Pakistan’s consumer price index (CPI) for March 2024 was 20.7% year over year, down from 23.1% in February 2024 and 35.4% in March 2023.
In March 2024, there was a noticeable spike in inflation as the CPI increased by 1.7%, compared to a mere 0.03% increase in the month before and a 3.7% increase in March 2023. These inflation rates were higher than expected by the market.
