The Pakistan Stock Exchange (PSX) experienced significant gains on Tuesday, continuing its upward trajectory despite a brief trading suspension due to a fire in the PSX building on Monday. The KSE-100 index surged by 456 points, reaching a record high of 81,023 points.
Key Factors Driving Market Growth
Several factors have contributed to the positive sentiment among investors:
- IMF Agreement Prospects: The anticipation of a staff-level agreement with the International Monetary Fund (IMF) has bolstered investor confidence.
- Monetary Policy Easing: The State Bank’s decision to ease its tight monetary policy has further encouraged investment.
- World Bank Support: The World Bank’s backing for the privatization of underperforming state-owned enterprises (SOEs) has been a positive development.
- Government Tax Measures: Promised tax measures in the 2024-25 budget have also supported market optimism.
- Corporate Returns Speculation: Expectations of robust corporate returns have strengthened investor sentiment.
Trading Suspension Due to Fire
On Monday, trading was temporarily suspended for two hours due to a fire at the PSX headquarters in Karachi. Trading was halted at 10:25 am and resumed at 12:25 pm. The situation was brought under control, and brokerage staff began returning to their offices.
Despite the disruption, the KSE-100 index closed at 80,566.21 points on Monday, gaining 353.41 points. The index has steadily risen in recent months, surpassing 80,000 points, driven by the IMF bailout last summer that averted a default and ongoing reforms under the IMF’s guidance.
The record-breaking performance of the KSE-100 index highlights the resilience and optimism within the Pakistani stock market, supported by favorable economic reforms and positive international financial engagements.
