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The market’s strong performance reflects the impact of stabilizing macroeconomic indicators and expectations of further monetary easing.
The benchmark KSE-100 shares index of the Pakistan Stock Exchange (PSX) rose further, gaining 1,086.3 points or 0.48 percent to hit a new intraday high of 104,361.24, on investor sentiment on record low inflation and continued economic reforms. With hope.
The day’s trading began on a ceremonial note when Federal Minister for Planning Ahsan Iqbal sounded the traditional gong to open trading at the Pakistan Stock Exchange.
During the event, Ahsan Iqbal highlighted the government’s commitment to economic stability and long-term development. He said that crossing the 100,000 mark in the 100-index shows the potential of Pakistan in front of the world.
Recalling past milestones, he said that in three years, we have invested $25 billion from China and curbed load shedding. He also noted that PricewaterhouseCoopers had projected Pakistan as a developing country by 2030.
Addressing Pakistan’s recent challenges, Iqbal observed, “In April 2022, when we took charge, Pakistan was on the brink of default. The choice was to save politics or save the state. They wanted the government to stabilize the economy.” Credited with tough decisions, such as rising energy prices and delaying elections.
“Inflation has dropped from 38% to below 5% in two years, and the stock market has gone from 30,000 to 100,000 points,” he said, highlighting the PSX as one of the most successful markets globally. Hoy noted.
PSX Chairperson Dr. Shamshad Akhtar highlighted the importance of Pakistan’s strong capital market and its recent achievements.
“Ahsan Iqbal has been a voice for developing countries at the United Nations,” remarked Dr. Shamshad Akhtar, who praised the federal minister’s role in global and national economic development.
He said that the Pakistan Stock Exchange is one of the best performing markets in the region and the world, driven by strong economic indicators and policies.
Dr. Akhtar emphasized the role of the government in promoting market growth through targeted programs.
“Crossing 100,000 points last week brought renewed excitement to the market,” he said, adding that the PSX’s ability to finance long-term development projects makes it an important asset for Pakistan’s economic future.
Reflecting on the market’s performance, Dr. Akhtar pointed out that the PSX has returned 7% in dollar terms over the past five years.
He also stressed the importance of partnering with the Chinese consortium to support the exchange’s growth journey, stressing that crossing the milestone of 100,000 points in the KSE-100 index will showcase Pakistan’s potential to the world. highlights
A key factor in today’s rally was Prime Minister Shehbaz Sharif’s expectation of a possible cut in the key policy rate by the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) in its upcoming meeting. Analysts believe that this will further strengthen the policy. Equity markets.
Addressing the Federal Cabinet meeting on Monday, expressed optimism about a further reduction in the State Bank’s policy rate.
The prime minister highlighted the 4.9 percent inflation rate recorded in November – the lowest in six-and-a-half years – as a game changer for the country’s economic landscape.
He stressed that such reduction not only reduces the financial burden on the people but also paves the way for economic development. He said that the reduction in inflation not only reduces the financial burden on the people but also opens the way for economic development.
The Prime Minister further said that to achieve stability, GDP growth, exports, industrial development and employment opportunities must now be promoted.
He attributed the growth to effective economic policies and hoped for a further reduction in the State Bank’s policy rate.
Inflation data released by the Pakistan Bureau of Statistics (PBS) showed a significant slowdown, beating the forecast of 5.8%-6.8%.
Recalling the inflation level of 3.5 percent during the previous Pakistan Muslim League-Nawaz (PML-N) regime, the prime minister said it was beyond imagination.
Analysts note that cooling price pressures reflect a combination of better monetary measures and stable economic fundamentals and see this as a clear sign of easing price pressures, prompting the SBP to further hike interest rates. A decline could be signaled, creating a more favorable environment for equity markets.
Monday’s session set the tone for today’s rally, with the KSE-100 gaining 1,917.62 points to close at a record 103,274.94.
Sectors such as banking, technology, and oil and gas exploration were the last to gain, with banking stocks benefiting substantially from recent regulatory changes, such as the removal of the minimum deposit rate (MDR) requirement for corporate deposits.
As the PSX continues to explore unprecedented territory, market analysts expect sustained growth, supported by consistent policy initiatives, stable external accounts, and a reduction in the cost of doing business.
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