The Pakistan Stock Exchange (PSX) continued its bullish run on Monday, with the benchmark KSE-100 Index crossing 56,000 for the first time in its history. The energy sector led the surge, with the index gaining over 1% by mid-morning.
The PSX has gained over 5,000 points in the past two weeks, shattering all previous records. This rapid rise has raised concerns that a correction may be on the horizon, but some analysts believe that the index could reach new highs of over 58,000.
Local investors are buoyed by the expectation that there will be no further interest rate hikes, given the declining inflation rate and the positive outcome of the ongoing talks with the International Monetary Fund (IMF). They are also hopeful that the government will soon privatize state-owned enterprises (SOEs), as required by the IMF agreement.
Other factors contributing to the bullish trend include improved macroeconomic indicators, reduced fiscal deficit, and the strong performance of the agriculture sector.
