On Tuesday, the benchmark KSE-100 index of the Pakistan Stock Exchange momentarily eclipsed the 50,000 threshold, marking a significant achievement unseen in six years.
Peaking at 50,017.45 at 11:23 a.m., the index experienced a slight decline, stabilizing at 49,787.57 just two hours later. Arif Habib, a brokerage firm, highlighted this development on X (previously known as Twitter), emphasizing that the 286-point surge to 50,017 (a 0.58% increase) was a notable moment, especially since the index hadn’t touched the 50,000 mark since June 07, 2017.
Investor Optimism Fuels Surge
Raza Jafri, the equity head at Intermarket Securities, attributed this optimistic trading behaviour to the government’s undivided attention to economic matters and the fortification of the Pakistani rupee. These factors contribute to a growing belief among investors that the interest rates have reached their zenith.
“While we might witness profit-taking due to the rapid rally, a favourable IMF review could potentially steer the KSE-100 towards unprecedented heights,” stated Jafri.
Further bolstering the positive market sentiment, Ahsan Mehanti from Arif Habib Corp noted that the thriving activity is likely a result of several factors. Investors are encouraged by the rupee’s comeback and discussions on CPEC ventures following the Prime Minister’s trip to China.
“The anticipated dip in inflation due to reductions in domestic POL prices, a shrinking current account deficit, and the potential disbursement of the forthcoming IMF instalment under the Stand-by Arrangement were pivotal in the day’s bullish climax,” Mehanti concluded.