The KSE-100 index of the Pakistan stock exchange rose by 76,000 points in the initial trading session, a huge gain.
According to PSX website data, the KSE-100 index reached its peak of 76,002 points at around 11:50 a.m., an increase of 1.18%, or 888 points. After closing at 75,114 points on the previous day, it showed immense upward momentum.
The KSE-100 index scored a total of 75,983 points at the closing week, a significant increase of 869 points (1.16%).
Loan Program Boosts
CEO of Topline Securities Muhammad Sohail said that the IMF’s positive statement about Pakistan’s new loan program is behind this rise. The statement indicated that there has been considerable progress towards reaching a staff-level agreement for the country. The new loan program, thereby instilling confidence in investors.
In addition to this, he highlighted a number of other positive developments that have supported the market’s strong performance. Such as the UAE’s $10 billion investment pledge and Saudi Arabia’s record purchases of Rekodiq shares.
The market reached its highest-ever level on May 15, when the KSE-100 index touched. A record high of 75,965 points, showing an increase of 565 points.
Earlier this week, the Pakistani bourse crossed a psychological barrier as the KSE-100 index soared above the historic mark of 74,000, indicating a strong uptick in overall market sentiments.
Prior to that, forecasts that the inflation rate for May could decline significantly upto13% may have been supported. The perceived positive outlook among investors, while further lowering policy rates in June, might add fuel to these expectations. Thus boosting investor confidence, commented research head Arif Habib Limited Tahir Abbas regarding markets. Directionality earlier last month; however, such comments were made before seeing any real bullish move. Therefore, to still need to wait a few more days before jumping full-on board any bandwagon. Still, we shall see what happens next time around.
The recent surge in the Pakistan Stock Exchange is an indicator of increasing trust among investors and hope for a better economy.
