PSX surges over 2,000 points amid hopes of economic recovery

The Pakistan Stock Exchange (PSX) experienced a robust surge of over 2,000 points on Monday, indicating a revitalised confidence among investors that brought bulls to the market.

The benchmark KSE-100 index gained 2,088.98 points, or 1.87%, at 11:30 am, leading the total to 113,440.15 points from the previous close of 111,351.17.

Key drivers included economic recovery, easing geopolitical tensions, and positive actions towards a business-friendly monetary policy.

Head of Research at Pak-Kuwait Investment Company, Samiullah Tariq, attributed the upward trend to the banking sector's clarity over taxation policy, which "provided impetus to the market."

The PSX turned to a bullish track after the federal cabinet approved the draft that revised the method for calculating bank profits, linking it to the Advance Deposit Ratio (ADR). Earlier, the method was replaced by a maximum slab.

Despite Friday's volatility, the equities market closed on a positive note after a week of decline. The benchmark KSE-100 Index settled at 111,351 points, with an increase of 1,838 points or 1.68%.

The PSX witnessed a remarkable turnaround, delivering impressive 35% returns in both PKR and USD terms.

This surge is driven by a significant shift in investor sentiment, with local mutual funds injecting a substantial Rs58 billion (US$207 million) into the market, fueled by bank inflows.

This capital influx marks a notable transition from fixed-income instruments to equities, transforming Pakistan's investment landscape.