The Pakistan Stock Exchange (PSX) kicked off the new trading week with a powerful upward momentum, reflecting growing investor confidence and renewed economic optimism. The benchmark KSE-100 index recorded a significant gain of over 900 points in intraday trading, climbing to an impressive level of 118,200 points. This marks one of the strongest single-day surges in recent weeks, and positions the market near its all-time high.
Analysts attribute this bullish trend to multiple converging economic signals. Key among them is the visible decline in inflationary pressure, which is strengthening investor sentiment. With March 2025 inflation showing signs of moderation and international oil prices also easing, expectations are building around a potential cut in Pakistan’s policy interest rate in the coming monetary policy review.
The optimism is further reinforced by the government’s renewed commitment to economic reforms, macroeconomic stability, and compliance with IMF guidelines—factors that have improved the overall risk profile of the country’s capital markets. Investor appetite has particularly grown in banking, cement, and oil & gas sectors, all of which posted notable gains on Monday.
Financial experts suggest that if the current policy direction remains consistent—focused on fiscal consolidation, monetary easing, and structural reforms—then the stock market could enter a sustained bull run over the next quarter. They also emphasized that foreign portfolio investors are watching Pakistan closely, especially after Moody’s recent comments hinting at a possible future ratings upgrade if macroeconomic indicators continue to stabilize.
The positive opening this week builds upon last week’s momentum, when the KSE-100 closed at 117,315 points after gaining 414 points on Friday. The continued rally reflects the cumulative confidence of institutional and retail investors alike.
On the forex front, the interbank exchange rate saw marginal pressure on the Pakistani rupee. The U.S. dollar appreciated slightly by 8 paisas, rising from Rs. 280.72 to Rs. 280.80. Currency analysts consider this a routine adjustment influenced by routine demand from importers rather than a shift in long-term forex sentiment.
Overall, Monday’s market performance is being hailed as a positive indicator for the financial health of the country, with analysts hopeful that this momentum can be maintained if macroeconomic discipline persists and political stability holds.