On Friday, bulls went crazy at the Pakistan Stock Exchange (PSX) when the benchmark KSE-100 Index achieved a new high by surpassing the 66,000 barrier for the first time ever.
Initiatives to revive the economy, better financial indicators, a high level of investor confidence, and anticipated inflows in the form of the second tranche of $700 million from the International Monetary Fund (IMF) all support the index’s upward trend.
KSE-100 Index Crossed 66,000 Points For the 1st Time in History
As per the PSX website, at 11:50 am, the KSE-100 index gained 1436 points, or 2.22%, to reach a high of 66,155.02 points.
Because investors were so confident about the nation’s economic recovery, there was a significant demand on the market for sectors that were heavy on indexes.
As a result of their contributions to the benchmark index’s historic surge, the cement, chemical, commercial banks, fertilizer, OMCs, and electricity production and distribution sectors among the best performers.
Previous Trend
Another successful trading session was achieved by the PSX on Thursday, with the KSE-100 index closing at 64,718.08, up 800.35 points, or 1.25%.
A bullish wave was sweeping the PSX, according to the Ministry of Finance’s most recent report, because of a positive IMF review and a stable monetary policy stance.
As to the “Monthly Economic Update and Outlook for November” report, it can be inferred that Pakistan’s economy is gradually but steadily recovering.
The pace of actions aimed at reviving the economy was also contributing to an increase in economic activity, according to the report.
The strengthening of the nation’s financial metrics, such as Saudi Arabia’s extension of a $3 billion deposit, also increased investor confidence.
Driving Forces Behind Economic Change
The driving forces behind it are the anticipated $2 billion influx from the World Bank in FY24, the Federal Board of Revenue’s (FBR) above-target tax collection, and the comparatively stable local currency.
The market analysts thought that interest rates had peaked and would probably start to drop starting in 2024, which would increase inflows into the stock market.
In line with the economic recovery, they also anticipated an improvement in business profitability in the upcoming quarters.
Investors Confidence Boost
In November 2023, the PSX experienced a remarkable surge of about 17%, with the greatest foreign investment in six years of $34.5 million, demonstrating investors’ strong faith in the nation’s economic recovery.
Only Covid’s unusual return in April 2020 was higher in percentage terms than this month’s return, which was the second highest in nearly ten years.
Pakistan’s stock market has had a significant upswing, contributing significantly to the benchmark index’s 50% gain since late June.
This has made Pakistan the second-best performer globally during this time, after Argentina.
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