The stock market extended its winning streak on Tuesday, since the feeling of investors remained promoted by record remittances and the growing optimism about the country’s external account perspective.
The KSE-100 Reference Index of the Pakistan Bag (PSX) reached an intradic maximum of 117,362,22, 972.19 points, or 0.84%, from the previous closure of 116,390.03, while the low of the session was recorded at 116,645.68, which still reflects a gain of 255.65 points or 0.22%.
Explaining the reason behind the positive feeling, Chief of Research of Arif Habib Limited, Sana Tawfik, said: “The positive market today is mainly due to the update given yesterday in the Economic Front by the Governor of the State Bank, in which $ 4.100 million remittance figures were shared.”
“Then there was news that Fitch will probably update our qualification. The governor also said yesterday that the current account of this month is in surplus and that the full year is also more likely to close in surplus,” he added.
The Rally followed the optimistic comments of the Governor of the State Bank of Pakistan (SBP) Jameel Ahmad, who on Monday expressed the hope that the country’s foreign exchange reserves could reach $ 14 billion in June 2025.
Talking with Geographical newsHe said that $ 2 billion in external payments were due during the next two and a half months, while $ 4–5 billion in expected tickets during the same period could lead to a net addition of $ 2 to 3 billion in reservations.
Governor Ahmad also projected that total remittances could reach a historical maximum of $ 38 billion at the end of the current fiscal year (FY25), compared to $ 30.25 billion in the fiscal year 2014. The Central Bank attributed this growth to a greater use of formal channels, regulatory efforts to stabilize the exchange market and the increase in confidence in banking systems.
The SBP data published on Monday showed that the Pakistani abroad sent $ 4.1 billion alone in March, the highest for a single month. This marked an interannual increase of 37% and an increase of 29.8% compared to February. Cumulative remittances for the first nine months of fiscal year 2015 increased by 33.2% to $ 28 billion.
The feeling of investors was reinforced by the reports that the International Crediting Agency Fitch can improve Pakistan’s rating in the next few days. According to the main official sources, the agency is considering moving the rating of the country of CCC+ A B, which reflects better macroeconomic stability and a reduced risk of non -compliance.
On Monday, the KSE-100 index had already published a strong rebound, increasing 1,536.70 points, or 1.34%, to close to 116,390.03, reversing the losses of the previous week and reinforce market optimism.
