Karachi, March 4, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a sharp rebound on Tuesday, surging by 757 points as investor confidence was boosted by inflation dropping to its lowest level in a decade.
The KSE-100 index closed at 112,744 points, significantly up from the previous day’s 111,987 points. The market’s positive momentum came after enduring four consecutive bearish sessions, with bullish investors regaining control. Analysts at Topline Securities Limited noted that the KSE-100 index reached an intraday high of 890 points and a low of 269 points, eventually settling with an impressive gain of 756 points (0.68%).
Investor sentiment improved notably as economic indicators pointed toward stability. The primary catalyst for this surge was the continued decline in inflation, which reached a decade-low of 1.5% year-on-year in February. This development strengthened hopes of potential monetary policy easing, making stocks more attractive.
The market’s recovery was led by strong buying activity in key sectors, with investors taking advantage of recent price corrections. Heavyweights such as UBL, MARI, FFC, SEARL, and HUBC were the biggest contributors to the rally, collectively adding 400 points to the KSE-100 index. Additionally, the pharmaceutical sector gained significant traction, with SEARL, BFBIO, and CPHL closing higher than their previous day’s prices.
Despite the positive rally, overall market activity remained relatively moderate. The total trading volume stood at 206 million shares, with a turnover of Rs11.3 billion. WTL led the volume chart, with 12.5 million shares exchanging hands.
Market experts believe that as long as inflation remains under control, investor confidence in the KSE-100 index is likely to strengthen further. The prospect of future interest rate cuts due to low inflation could further fuel bullish sentiment in the stock market. However, analysts caution that external factors such as global oil prices and economic policies will continue to influence market dynamics.
With inflation at a historic low and economic stability improving, investors are optimistic about continued positive performance in the KSE-100 index in the coming weeks. The stock market’s rally suggests growing confidence in Pakistan’s economic trajectory, provided macroeconomic indicators remain favorable.