Pakistan’s economy continues to show signs of improvement, driven by a series of government measures over the past few months. This economic ‘turnaround’ has bolstered investor confidence, leading to a remarkable surge in the Pakistan Stock Exchange (PSX).
On Friday, the KSE-100 index surpassed the 115,000 mark, reflecting sustained bullish sentiment. The market gained 600 points in early trading, reaching 115,172, marking the 13th consecutive day of positive performance.
This upward momentum follows Thursday’s historic session, where the index surged past 114,000 points, closing at 114,180 with an impressive gain of 3,370 points. The previous day, Wednesday, had seen the market close at 111,810 points.
Factors Driving the Rally
Several factors are driving this record-breaking streak:
- IMF Loan Disbursement: Recent cash injections from the International Monetary Fund (IMF) and ongoing climate funding discussions have fueled optimism.
- Monetary Policy Expectations: Anticipation of a potential rate cut during the State Bank of Pakistan’s (SBP) upcoming policy meeting on December 16 has encouraged further investment.
- Government Reforms: The slew of economic measures implemented by the government has helped restore confidence in the market.
Milestone Achievements
On November 30, the PSX reached a historic milestone, closing above 100,000 points for the first time, underscoring the market’s robust growth trajectory.
Looking Ahead
With bullish momentum prevailing and significant economic support measures in place, investors remain optimistic about the PSX’s continued upward trend. The upcoming SBP decision could further influence market sentiment and maintain this positive trajectory.
