Shares at the Pakistan Stock Exchange soared, surpassing the 900-point mark to reach an unprecedented milestone of 100,000 on Thursday.
At 9:35 AM, the benchmark KSE-100 index had climbed by 947.32 points, a 0.95 per cent increase, to 100,216.57 points from its previous close of 99,269.25 points.
This record achievement occurred just two days after the PSX experienced temporary instability due to political tensions. It rebounded significantly the following day, marking the highest single-day gain on Wednesday.
Read: PSX Surges 3.96%: Political Ease and Banking Reforms Propel Stocks
Mohammed Sohail, chief executive of Topline Securities, remarked, “An impressive 150 per cent return from 40k to 100k in merely 17 months!”
He emphasized the role of a new IMF (International Monetary Fund) loan and the impact of fiscal and monetary discipline in bolstering investor confidence. He also noted the rapid decline in inflation and interest rates, which have infused additional liquidity into the stock market.
Despite this surge, Sohail pointed out that the market’s price-to-earnings ratio remains at 5x, below the average of 7x.
Reflecting on the market’s growth, Sohail said, “From less than 1,000 points in the late 1990s to 100,000 today, the market has increased a hundredfold.” He described this as the result of “25 years of fluctuations, bull and bear markets, and shifting sentiments.”
He added, “Despite numerous challenges, the market has delivered a 20 per cent annual return in rupees and a 13 per cent annual return in U.S. dollars over the past 25 years,” underscoring the market’s resilience and potential.
