Pakistan Stock Exchange surges over 4000 points in intraday trading

The Pakistan Stock Exchange (PSX) saw a significant rise on Monday, with the KSE-100 index climbing over 4,000 points during intraday trading. The index increased by 3,021.94 points, reaching 112,535.08, and later peaked at 113,874.01, up 4,360.87 points. Analysts attribute this surge to fresh inflows following a market correction last week and a decline in fixed income yields, making stocks more appealing. Despite reasonable valuations, the focus is shifting towards earnings growth as interest rate declines are expected to slow. Last week, the market had dropped nearly 3,800 points after the State Bank of Pakistan eased interest rates to 13%. Core inflation remains a concern, with rates at 9.7%, affecting consumer and business expectations.