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HomeFinancePakistan Stock Exchange Hits Record High at 56,000 Points Amid Economic Developments

Pakistan Stock Exchange Hits Record High at 56,000 Points Amid Economic Developments

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In a significant development, the Pakistan Stock Exchange (PSX) reached a record-breaking high, crossing the 56,000-point threshold. The PSX benchmark KSE-100 index surged to 56,238 points, showcasing a remarkable 1.5% increase, equivalent to around 850 points compared to the previous Friday’s closing.

The recent bullish trend in the stock market is attributed to the positive outcome of the International Monetary Fund (IMF) examination of the local economy. Investors are buoyant with the anticipation of IMF clearance for the next tranche of $710 million, as Pakistan has successfully met all the assessment conditions.

Read Also: Gold prices surge in Pakistan

Market speculations include the possibility of an adjustment in the central bank’s benchmark policy rate, potentially taking place in December 2023. This expectation follows a substantial decline in the yield on government debt instruments by 180 basis points the previous week. A lowered policy rate is seen as a favourable development, facilitating enterprises with access to low-interest bank financing for new investment projects.

Listed corporations on the PSX are already reporting record earnings, contributing to the positive market sentiment. Additionally, there is anticipation of increased foreign investments, particularly ahead of MSCI’s semi-annual global stock index review scheduled for Tuesday. The expected weight gain for PSX in the peer country review is likely to attract international investors to explore opportunities in the Pakistani market.

Contrastingly, the Pakistani rupee faced a downward trend, reaching a six-week low of Rs. 288 against the US dollar in the interbank market. This marks the fifteenth consecutive working day of a negative trend for the rupee, resulting in an approximate loss of 4%, or Rs. 11, in the last 15 days.

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