KARACHI: After many ups and downs, shares at the Pakistan Stock Exchange (PSX) surged over 900 points to hit the historic 100,000 milestone on Thursday.
The benchmark KSE-100 surged 843.74, or 0.85 per cent, to stand at 100,119.22 points from the last close of 99,269.25 points at 9:35am.
Analysts lauded this significant development and said, “A remarkable 150pc return from 40k to 100k in just 17 months!”
Talking to media Mohammed Sohail, chief executive of Topline Securities, said that new International Monetary Fund (IMF) loan coupled with financial and monetary discipline improving investors sentiments.
Furthermore, faster than expected, drop in inflation and interest rates adding cash liquidity to the stock market, he remarked.
Pakistan in spite of this rally trades at price to earnings of 5x compared to the historical average of 7x.
From less than 1,000 points in the late 1990s to 100,000 today, the market is up 100 times. This significant development took place following 25 years of ups and downs, bull runs and bear runs, optimism and pessimism.
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Despite several challenges, the market has generated following returns in last 25 years.
There is a 20pc annual return in rupee and a 13pc annual return in the greenback which stood as a testament to resilience and potential.
Pakistan PM Congratulates Nation on Milestone
Pakistan’s Prime Minister Shehbaz Sharif felicitated the nation on the KSE-100 Index crossing the 100,000 milestone for the first time, state-run Radio Pakistan reported.
The PM said this “remarkable achievement shows the trust of business community and investors in government’s policies”.
He claimed the government’s economic team and officials are working tirelessly to promote investment in the South Asian country deserve appreciation for achieving this landmark.
The PM pledged to take every possible step for the economic stability and development of the nation, saying that they sacrificed their politics to save the country from default.
“By the grace of God Almighty, the sacrifice has not gone in vain,” he said, saying that as soon as the “anarchist group left, the positive trend returned to the stock exchange”.
Earlier, the Finance Division’s Monthly Economic Update and Outlook report, released on Wednesday, projected inflation to settle between 5.6% and 6.5% by December 2024, signalling a significant decline from earlier highs.
The government’s efforts to curb inflation have included a sharp reduction in interest rates. Earlier this month, Pakistan’s central bank slashed rates by 250 basis points, a move aimed at spurring economic growth amid easing price pressures.
Data from the Pakistan Bureau of Statistics (PBS) revealed a notable drop in inflation, which fell to 7.2% in October from a peak of nearly 40% in May. Inflation had been 6.9% in September, indicating a gradual stabilisation of prices following months of steep increases.
More to be followed…
