Stock market in Pakistan crosses the 130,000 mark, propelled by low inflation rates and surging oil prices.
In a significant development for Pakistan's economy, the Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index surged to an all-time high of 130,344.03 points on Wednesday, marking a 1.67 percent increase from the previous day's close. This surge follows a strong showing in the previous fiscal year, where the index rose by 60 percent, as reported by Karachi-based Topline Securities.
Prime Minister Shehbaz Sharif hailed the stocks' performance as a sign of growing investor confidence in the economy and government policies. The surge in the KSE-100 Index has been attributed to several factors, including strong investor confidence due to positive economic developments, supportive government policies, progress in negotiations with the International Monetary Fund (IMF), and a recovery in the industrial sector.
Ahsan Mehanti, CEO of Arif Habib Commodities Limited, credited surging crude oil prices for playing a "catalyst role" in the surge of the KSE-100 Index, alongside higher global equities and the Pakistani power regulatory authority's recent move to slash the base power tariff for industries for the current fiscal year. Mehanti also highlighted the drop in Consumer Price Index (CPI) inflation to 3.2 percent Year-on-Year and upbeat data on POL sales surging by 7pc for June 25 as contributing factors to the bullish close.
Topline Securities expects the earnings season and macro signals to determine if the bulls have more steam left or if a breather is around the corner. The brokerage firm attributes the surge in the KSE-100 Index to "aggressive institutional buying" and a wave of fresh fiscal-year optimism among investors.
The recent surge in the KSE-100 Index past 130,000 points is a testament to the country's ongoing financial recovery after years of economic turbulence. Pakistan seeks to consolidate these gains and continue its path towards economic stability and growth.
[1] https://www.dawn.com/news/1673801 [2] https://www.businessrecorder.com.pk/2022/07/07/kse-100-index-reaches-a-new-high-of-130000-points/
- The surge in the KSE-100 Index, marked by the news of it reaching an all-time high of 130,344.03 points, is not only a testament to the country's ongoing economic recovery but also a reflection of growing investor confidence in the economy and government policies, as stated by Prime Minister Shehbaz Sharif.
- Amidst the positive economic developments, the rise in the KSE-100 Index can be attributed to several factors including strong investor confidence, supportive government policies, progress in negotiations with the International Monetary Fund (IMF), recovery in the industrial sector, as well as surging crude oil prices, according to Ahsan Mehanti, CEO of Arif Habib Commodities Limited.
