The Pakistan Stock Exchange (PSX) continued its upward trajectory on Monday, boosted by favorable economic indicators and relative political stability, with the benchmark index rising over 550 points during intra-day trading.

By 11:40 am, the benchmark index was at 86,000, reflecting an increase of 552.36 points or 0.65%. Key sectors such as automobile assemblers, cement, chemicals, commercial banks, fertilizers, and oil and gas exploration companies saw broad-based buying, with index-heavy stocks like OGDC, PPL, HBL, NBP, EFERT, and HUBCO performing well.

Analysts pointed to expectations of a lower inflation rate this month as a key factor driving the rally. “The market is anticipating a Consumer Price Index (CPI) reading of below 7% for October,” said Saad Hanif, an analyst at Ismail Iqbal Securities. However, he cautioned that recent adjustments to electricity tariffs could lead to a rise in inflation.

Political developments also contributed to market confidence, with the National Assembly passing the 26th Amendment Bill, a significant judiciary-related constitutional package, early Monday morning.

Last week, the PSX experienced a mixed trend, ultimately closing down by 233.31 points week-on-week, ending at 85,250.09 points. Foreign investors remained net sellers, withdrawing $11.614 million from the local equity market. Total market capitalization increased by Rs21 billion, reaching Rs11.177 trillion.

On a global scale, Asian shares fluctuated amid weakness in Chinese stocks, while Bitcoin reached a three-month high. Gold prices surged to record levels amid ongoing conflicts in the Middle East and a closely contested U.S. presidential election, with investors favoring the yellow metal amid global uncertainty.

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In Hong Kong, equities fell by 0.6%, while China’s blue-chip index experienced mixed trading, last up by 0.4%. The Shanghai Composite Index gained 0.36%, capping gains in MSCI’s broadest index of Asia-Pacific shares outside Japan, which saw a modest increase of 0.11%. This came after U.S. stocks marked their sixth consecutive week of gains on Friday.