Excitement of the CPI numbers yesterday was offset by the larger-than-expected trade deficit, says analyst
\n Islamabad
\nThe stock market rebounded on Tuesday, as investors weighed the latest economic data and anticipated upcoming monetary policy decisions.
\nThe market remained range-bound throughout the session, with thin volumes reflecting cautious sentiment ahead of key economic events.
\nThe Pakistan Stock Exchange\u2019s (PSX) KSE-100 Index closed at 112,743.79 points, posting a gain of 756.91 points, or 0.68%, recovering from Monday\u2019s sharp decline. The benchmark index touched an intraday high of 112,877.01 points, while the lowest level was recorded at 111,717.17 points.
\nMarket experts noted that while inflation data provided some support, the optimism was tempered by the widening trade deficit.
\n\u201cThe market has remained range-bound for the last few days, and the lack of volumes is also a concern. The excitement of the CPI numbers yesterday was offset by the larger-than-expected trade deficit and neutralised the potential upside move,\u201d said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
\n\u201cThe next catalyst in the market will be the monetary policy, followed by the IMF mission completion\u2014these will help the market decide the next direction,\u201d he added.
\nPakistan\u2019s inflation rate saw a sharp decline in February 2025, dropping to 1.5% year-on-year (YoY), marking the lowest level since September 2015, according to data from the Pakistan Bureau of Statistics (PBS).
\nMonth-on-month, inflation decreased by 0.9%, contrasting with a 0.2% rise in January and no change in February 2024.
\nThe average inflation rate for the first eight months (July-February) of the current fiscal year stood at 5.85%, a stark drop from the 27.96% recorded in the same period last year.
\nDespite this positive development, Pakistan\u2019s trade deficit surged to $2.3 billion in February, marking a 33.4% increase compared to $1.72 billion in the same month last year.
\nExports fell 5.57% to $2.44 billion, down from $2.58 billion a year earlier, while imports rose by 10% to $4.738 billion.
\nOn a month-over-month basis, exports declined by 17.35% from $2.95 billion in January, while imports dropped by 9.9% from $5.26 billion in the previous month. Over the first eight months of the fiscal year, total exports increased by 8.17% to $22.02 billion, compared to $20.36 billion in the same period last year.
\nMeanwhile, Pakistan\u2019s banking sector reported robust earnings for 2024, with listed banks posting a combined profit of nearly Rs600 billion despite a tax expense of Rs650 billion, according to brokerage firm Topline Securities.
\nMeezan Bank Ltd (MEBL) emerged as the most profitable bank, recording earnings of Rs101.5 billion, followed by United Bank Ltd (UBL) at Rs75.8 billion and MCB Bank Ltd (MCB) at Rs63.5 billion. Habib Bank Ltd (HBL) and Standard Chartered Pakistan Ltd (SCBPL) rounded out the top five with profits of Rs57.8 billion and Rs46.1 billion, respectively.
\nThe PSX had begun the week on a weak note, with the KSE-100 Index plunging by 1,264.78 points, or 1.12%, to close at 111,986.89 points on Monday. Investors remained cautious ahead of the upcoming monetary policy meeting and the ongoing IMF review.<\/p>\n","protected":false},"excerpt":{"rendered":"
Excitement of the CPI numbers yesterday was offset by the larger-than-expected trade deficit, says analyst Islamabad The stock market rebounded on Tuesday, as investors weighed the latest economic data and anticipated upcoming monetary policy decisions. The market remained range-bound throughout the session, with thin volumes reflecting cautious sentiment ahead of key economic events. The Pakistan […]<\/p>\n","protected":false},"author":2,"featured_media":352583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-465220","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n