Pakistan’s stock market has reached new heights, with the benchmark KSE-100 index hitting a record high of 71,433 points, marking a significant 0.74% increase. This surge comes after breaching the key 71,000 level on Monday, showcasing the market’s resilience and investor confidence.
The index experienced a notable gain of 631.86 points, reaching 71,541.76 points by midday, compared to the previous close at 70,909.90. This positive momentum continued, closing at 71,433.46 points, up by 523.56 points or 0.74%, reflecting the market’s upward trajectory.
Over the past year, the market has seen a remarkable 74% surge and is currently up by 10.43% year-to-date, indicating a sustained period of growth and stability.
The driving factors behind this bullish trend include Pakistan’s efforts to finalize a new IMF loan agreement in May, positive March quarter dividends supporting share prices, and optimistic projections of declining inflation and interest rates.
Analysts and experts attribute today’s market performance to various factors, such as media reports suggesting Saudi investment in Reko Diq, the likelihood of securing the next IMF program, and predictions of a substantial decrease in inflation and interest rates in the near future.
Furthermore, the country’s current account remains positive and stable, signaling a promising economic recovery. Undervalued assets have also contributed to the market rally, as investors view this as a reversion to the mean.
Key triggers for the ongoing rally include robust corporate earnings, favorable payout announcements, smooth negotiations for a new IMF program, increasing investor confidence, declining inflation rates, and a focus on heavyweight stocks like Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL).
Overall, market experts are optimistic about the future outlook, citing a relatively stable Middle Eastern situation, positive news regarding IMF negotiations, and expectations of Saudi investments as factors contributing to the bullish momentum in Pakistan’s stock market.
