The Pakistan Stock Exchange (PSX) experienced a highly bullish session on Thursday, with the KSE-100 index surging nearly 1,000 points amidst improving macroeconomic indicators. The benchmark KSE-100 index closed at 81,459.28 points, up 1.24% from the previous close of 80,461.33 points.
At its peak, the index touched an all-time high of 82,000.89 points around 11:45 am, marking a significant milestone for the market.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, attributed the gain to a reduction in fears of foreign selling and expectations of further interest rate cuts. Tariq explained that these expectations are “emanating from yesterday’s rejection of t-bill auctions along with a rate cut by the Federal Reserve.”
Raza Jafferi, CEO of EFG Hermes Pakistan, echoed these sentiments, stating, “The current account delivering a surplus in August, together with expectations of more interest rate cuts in coming monetary policies, is pulling domestic liquidity into equities and driving the KSE-100 higher.”
According to Bloomberg, the PSX has been one of the best-performing stock exchanges globally this year, benefiting from an improved economic outlook and a crucial initial loan agreement with the International Monetary Fund (IMF) in July. The current account balance has shown improvement, and the State Bank of Pakistan (SBP) has responded by slashing interest rates as inflation eases.
Aqeel Karim Dhedhi, Chairman of AKD Group, told Bloomberg that the securing of the IMF loan and improving economic indicators are attracting investors. He noted that Pakistan remains “very cheap for foreign investors,” and he expects investments to continue, particularly after the interest rate cut.
The KSE-100 index’s strong performance reflects growing investor confidence in Pakistan’s economic stability and growth prospects. The recent economic developments have created a favorable environment for both domestic and international investors, contributing to the stock market’s upward trajectory.
The PSX’s robust performance underscores the positive impact of improved macroeconomic indicators and strategic financial decisions. As Pakistan continues to implement measures to stabilize its economy, the stock market is likely to remain an attractive destination for investors seeking growth opportunities.
