PSX kicks off new year with surge to record

Pakistan Stock Exchange (PSX) on Wednesday started the new year on a strong note as it rose to a record high, driven by extensive buying that pushed the KSE-100 index up by nearly 1,900 points. The market's positive performance was powered by increasing confidence of local and institutional investors, which reflected their trust in Pakistan's economy. Besides, the rally came after monetary policy easing and relative political stability. Expectations of a further reduction in the State Bank of Pakistan's (SBP) policy rate, lower inflation and rupee stability also aided market sentiment. Arif Habib Corp MD Ahsan Mehanti stated that stocks closed higher in an earnings season rally as investors eyed reduction in the SBP's key policy rate amid thin inflation, robust economic indicators and rupee stability following disbursements under the IMF programme.