The Pakistan Stock Exchange (PSX) reached an unprecedented milestone on Thursday, surpassing the 100,000-point mark for the first time in its history. This record-breaking achievement highlights strong investor confidence, underpinned by positive economic indicators and robust market performance.
The KSE-100 Index, PSX’s benchmark, gained 1,077.25 points or 1.09% during intraday trading, closing at 100,346.50 points. This marked a significant rise from its previous close of 99,269.25 points.
Earlier this week, the market faced turmoil due to political unrest, plunging over 3,500 points following violent clashes during a protest march on Islamabad. However, stability was restored after the protest was called off, leading to a remarkable rebound of over 4,600 points.
Market analysts attribute the historic surge to multiple factors, including the government’s commitment to reforms and improving macroeconomic conditions. Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, emphasized the impact of falling yields and declining inflation expectations on market performance.
According to the Ministry of Finance, inflation is forecasted to decrease to 5.8%-6.8% in November and further to 5.6%-6.5% in December. These projections have boosted investor sentiment, encouraging greater participation in the market.
The KSE-100 Index has delivered a 60% year-to-date gain, driven by 47% capital appreciation and 13% dividend yields. Key sectors propelling this growth include commercial banking, fertilizers, and oil and gas exploration. Stocks like Fauji Fertilizer and United Bank Ltd have been pivotal in driving the index upward.
Experts also pointed to the government’s adherence to the International Monetary Fund’s (IMF) programme as a key factor supporting market stability and growth. Increased mutual fund investments in equities have further contributed to this upward momentum.
The PSX’s performance reflects renewed investor confidence in Pakistan’s economic trajectory, marking a significant milestone for the country’s financial markets.
