The Pakistan Stock Exchange (PSX) witnessed a surge of 1,000 points, reaching 48,900, following the announcement by Morgan Stanley Capital International (MSCI) to incorporate 15 Pakistani companies into its Frontier Market Index. This move is anticipated to boost foreign investment interest in Pakistan’s stock market.
A Dip Amidst Political Uncertainty
Despite the initial surge, the PSX’s KSE 100 Index later settled at 48,410 points due to profit booking. Recent speculations about a possible delay in the upcoming 2023 elections led to aggressive selling, causing the index to dip below 48,000 points earlier in the week.
Historical Growth and Future Projections
Recalling the past, the PSX spiked by 20% after the IMF approved a $3 billion loan for Pakistan in June 2023. Considering the anticipated political stability post-elections, market analysts expect the stock market to reach 52,000 points by the end of fiscal year 2023-24.