The Pakistan Stock Exchange (PSX) surpassed the 100,000 point mark on Thursday, marking a historic high and reflecting strong investor confidence, driven by positive economic indicators.
The PSX’s benchmark KSE-100 index jumped 1,077.25 points, or 1.09 percent, to 100,346.50 points during intraday trading, up from the previous close of 99,269 .25 points.
Stocks had retreated two days ago due to political instability, with the market suffering a crash of over 3,500 points after the PTI’s march on Islamabad turned violent.
However, it rebounded to climb more than 4,600 points and close at 99,269.25, shortly after the party called off its protest following a government crackdown on protesters.
Market experts have attributed this historic achievement to several factors, including the government’s unwavering commitment to implementing reforms.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, said: Geo.tv that falling yields and lower inflation expectations are also boosting the market.
Inflation is expected to slow to 5.8%-6.8% in November, then further to 5.6%-6.5% in December, the Finance Ministry said in its monthly economic report.
The KSE-100 index’s historic milestone also reflects a 60% year-to-date gain, driven by a combination of 47% capital gains and 13% dividend yield.
Major contributing sectors include commercial banks, fertilizers and oil and gas exploration, while major stocks such as Fauji Fertilizer and United Bank Ltd played a pivotal role.
The analyst noted that one of the key factors behind the bullish market dynamics was the government’s consistent adherence to the International Monetary Fund (IMF) program.
Tariq further added that expectations of increased mutual fund investments in stocks contributed to the rise in the index.