Stock Market Rebounds as Investors Weigh Economic Data, Monetary Policy Outlook

ISLAMABAD, March 5 (Alliance News): The Pakistan Stock Exchange (PSX) rebounded on Tuesday, with the KSE-100 Index gaining 756.91 points (0.68%) to close at 112,743.79 points, recovering from Monday’s sharp decline.

The benchmark index touched an intraday high of 112,877.01 and a low of 111,717.17 amid thin trading volumes.

Market experts noted that while lower inflation provided support, investor sentiment remained cautious due to a widening trade deficit. Pakistan’s inflation rate fell to 1.5% year-on-year in February 2025, the lowest since September 2015.

However, the trade deficit surged 33.4% to $2.3 billion, as exports declined by 5.57% to $2.44 billion, while imports rose 10% to $4.738 billion.

Banking sector earnings remained strong, with Meezan Bank reporting the highest profit of Rs101.5 billion, followed by United Bank Ltd at Rs75.8 billion.

Analysts said the upcoming monetary policy decision and the ongoing IMF review would shape the market’s next direction.