KARACHI – The Pakistan Stock Exchange (PSX) continues its bullish momentum on Friday as it has crossed a milestone of 179,000 points, shattering all previous records on second day of the New Year.
During intraday trading, the KSE-100 index gained whooping 2,661.39 points to reach all-time high of 179,016.88 points, reflecting a positive change of 1.49 percent compared to previous close of 176,355.49 points.
The development comes after Bloomberg, a renowned global financial data provider, has released its latest report on Pakistan, confirming a significant reduction in inflation and indicating stability at the policy level.
According to the report, the overall price stability in Pakistan has been improving, and signs of better economic governance are becoming evident. Inflation stood at 5.6% in December, lower than market expectations and the 6.1% rate recorded in November.
The report highlights that food price inflation has significantly eased, with food inflation limited to 3.24%. This is attributed to better food availability, leading to market stabilization and providing relief to the public.
Bloomberg states that the lower-than-expected inflation has boosted investor confidence and validated the government’s policy direction.
In line with the improved economic conditions, the State Bank of Pakistan (SBP) lowered its policy rate to the lowest level in nearly three years, a move that signals control over inflationary pressures. A 50 basis points reduction in interest rates suggests that the cost of financing for business activities and investments will become more favorable.
Bloomberg also notes that the decline in inflation has contributed to a more favorable investment environment, reducing economic uncertainty and improving purchasing power, thus providing further relief to consumers.
