After record rally
\nKSE-100 Index falls 2,258.98 points, or -2.05%, to reach low of 107,711.40 during intraday trading
\n kakrachi
\nThe Pakistan Stock Exchange (PSX) saw a downturn on Tuesday as profit-taking and market corrections led to a sharp decline, erasing some of the gains from its recent record-breaking rally.
\nThe KSE-100 Index closed at 108,896.65, down 1,073.73 points, or -0.98%. The session saw an intraday high of 111,759.58 and a low of 107,711.40.
\nWhile the market opened on a positive note, following Monday\u2019s close of 109,970.38, selling pressure mounted as investors opted to lock in profits after the earlier surge past the 111,000-point milestone.
\nDespite the correction, analysts believe the market retains its long-term bullish outlook, underpinned by strong macroeconomic fundamentals and favorable economic indicators.
\n\u201cAnticipation of a rate cut, lower inflation numbers, improved liquidity\u2014particularly buying from funds\u2014and low bond yields making equities an attractive asset class are the key drivers,\u201d said Sana Tawfik, Head of Research at Arif Habib Limited. The rally highlights improving sentiment around Pakistan\u2019s economic outlook, driven by declining inflation, stronger foreign reserves, and increased economic activity. Investors remain encouraged by ongoing reforms and the potential for further monetary easing, setting the stage for sustained market momentum in the days ahead.
\nRemittances reached $14.8 billion during the first five months of FY2025, marking a 33.6% year-on-year increase, according to the State Bank of Pakistan (SBP). November alone saw inflows of $2.9 billion, up 29.1% from the same month last year, though slightly lower than October\u2019s figure.
\nKey drivers behind this growth include a stable rupee, government incentives for banks and money exchangers, and a rise in emigration. Over one million skilled professionals have left Pakistan in the last three years, significantly boosting official remittance inflows. Additionally, efforts to curb illicit currency trading and easing global inflation have further supported this positive trend.
\nBroader macroeconomic improvements have continued to drive market optimism. Inflation dropped to 4.9% in November, the lowest since April 2018, opening the door for potential monetary easing. Saudi Arabia\u2019s decision to extend a $3 billion deposit for another year and formalised trade deals worth $560 million have reinforced foreign reserves and investor confidence.
\nEconomic activity also remains strong, with petroleum sales hitting a 25-month high of 1.58 million tons in November. Furthermore, the government\u2019s successful Rs353 billion Ijarah Sukuk auction has added liquidity to the financial system.
\n\u201cConsistent liquidity flow from mutual funds and individuals, driven by better returns and favourable taxation treatment, has been a factor,\u201d added Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company.
\nMonday saw the PSX extend its rally for the ninth consecutive session. The KSE-100 Index gained 916.43 points, or 0.84%, to close at 109,970.38, with an intraday high of 110,248.98.
\nThe upcoming State Bank of Pakistan monetary policy meeting on December 16 is a key event for investors, with expectations of a significant rate cut that could offer additional momentum to the market.<\/p>\n","protected":false},"excerpt":{"rendered":"
After record rally KSE-100 Index falls 2,258.98 points, or -2.05%, to reach low of 107,711.40 during intraday trading kakrachi The Pakistan Stock Exchange (PSX) saw a downturn on Tuesday as profit-taking and market corrections led to a sharp decline, erasing some of the gains from its recent record-breaking rally. The KSE-100 Index closed at 108,896.65, […]<\/p>\n","protected":false},"author":2,"featured_media":363666,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-448631","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n