The Pakistan Stock Exchange (PSX) on Thursday crossed the 100,000-point mark to hit a historic high, showing strong investor confidence fueled by encouraging economic trends.
PSX’s benchmark KSE-100 index rose 1,077.25 points or 1.09 percent to 100,346.50 points in intraday trade, higher than the previous close of 99,269.25 points.
Stocks retreated two days ago due to political instability, with the market falling more than 3,500 points after PTI’s march on Islamabad turned violent.
However, it bounced back to a gain of over 4,600 points to close at 99,269.25, after the party called off its protests following a government crackdown on protesters.
Market experts attributed this landmark achievement to several factors, particularly the government’s unwavering commitment to implementing reforms.
Samiullah Tariq, head of research at Pak-Kuwait Investment Company, said Thenews.com.pk That output cuts and low inflation expectations are also driving the market.
The finance ministry said in its monthly economic report that inflation is expected to be 5.8%-6.8% in November, and again at 5.6%-6.5% in December.
The historical milestone of the KSE-100 index also shows a 60% year-to-date gain from a combination of 47% capital gains and 13% dividend yield.
Major contributors included commercial banks, fertilizers, and oil and gas exploration, while top stocks such as Fuji Fertilizer and United Bank Ltd contributed significantly.
The analyst noted that a key factor driving the market’s upward momentum is the government’s continued restraint on the International Monetary Fund (IMF) program.
Expectations of increased mutual fund investment in equities contributed to the rise in the index, Tariq added.