The bullish streak at the Pakistan Stock Exchange (PSX) carried on unabated on Thursday as favourable economic indicators helped push the market beyond the significant 49,000-point threshold, a height not seen in the last six years.
During the day’s trading activities, PSX’s pivotal KSE 100-share Index witnessed an encouraging rise of 560.20 points, or 1.15%, to 49,324.50 points. This level marks the highest since June 9, 2017.
As of the latest update, the Karachi Stock Exchange (KSE)-100 index is trading at an impressive 49,144 points. Market brokers and investors are optimistic and confident that the market will reach 50,000 points shortly.
Looking back at the market’s history, on June 8, 2017, the PSX’s 100-index stood at 49,000 points, and since then, it has experienced fluctuations and variations in performance. However, in the past five weeks alone, the PSX has witnessed a remarkable surge, gaining over 8,000 points to reach its current level of over 49,000.
Catalysts for the Uplift in Market Index
The benchmark index has seen an impressive growth of 7,871 points since Pakistan agreed to a staff-level pact with the International Monetary Fund (IMF) for a $3 billion Standby Agreement.
The sustained uptrend in the market is believed to be due to various factors. Among these, analysts highlight the State Bank of Pakistan’s (SBP) decision to maintain the status quo on its policy rate as a significant contributor.
The stock market came shortly after Pakistan secured the International Monetary Fund (IMF) loan program. The infusion of the IMF loan program appears to have bolstered investor confidence, leading to increased market activity and higher valuations across various sectors.
Market analysts and participants keep a close eye on the ongoing trends, and the anticipation of crossing the 50,000 mark generates excitement within the financial community. While market conditions can be subject to fluctuations and uncertainties, the recent positive trajectory of the PSX is being closely monitored, with the potential for further growth and prosperity on the horizon.
