Karachi, July 27, 2023 – The Pakistan Stock Exchange (PSX) witnessed a remarkable surge on Thursday as the benchmark KSE-100 index soared to a 20-month high, closing at 47,077 points.
This impressive rally comes amidst a flurry of positive economic indicators, driving investor confidence to new heights.
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The market gained 395 points compared to the previous day’s closing figure of 46,682 points, signifying a substantial increase in value. According to financial experts, the Pakistan Stock Market has emerged as the best-performing market globally in July 2023, boasting a staggering USD gain of 15 percent.
Mohammad Sohail, the CEO and Founder of Topline Securities, expressed his enthusiasm about the market’s performance, particularly highlighting the KSE-100 Index’s significant surge to reach its current record level. Sohail attributed this surge to several factors that have combined to create a favorable investment climate in the country.
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One of the major drivers behind this surge is the International Monetary Fund (IMF) deal that has bolstered investor confidence in Pakistan’s economic stability. Additionally, the country has witnessed an increase in dollar inflows from friendly nations, leading to a rise in foreign exchange reserves. Moreover, falling inflation rates have further encouraged investment in the stock market.
Another critical factor contributing to the market’s upswing is the clarity surrounding the smooth transfer of power to the caretaker government. This transition is expected to pave the way for the organization of elections scheduled for November this year, creating a positive political outlook for investors.
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Market analysts also pointed out that the recently announced June quarter results and dividends have surpassed expectations, with companies such as United Bank Limited (UBL) reporting excellent financial performances. Such positive corporate outcomes have added to the overall investor sentiment.
Furthermore, the return of foreign portfolio investors has played a significant role in driving the market to new heights. In the month of July alone, foreign corporates have shown net buying of approximately USD 18 million, signaling renewed interest and confidence in Pakistan’s economy.
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Thursday’s trading volume amounted to PKR 28 billion (equivalent to USD 100 million), marking a 19-month high. This surge in trading activity reflects the increased participation of investors seeking opportunities in the thriving Pakistani stock market.
As the KSE-100 index continues to scale new heights, market participants remain optimistic about the future prospects of the Pakistan Stock Exchange. The combination of a favorable economic environment, positive corporate results, and growing foreign investment has laid a strong foundation for sustained growth in the coming months.
Disclaimer: The above article is based on current market conditions and financial expert statements as of July 27, 2023. Stock market conditions can fluctuate rapidly, and readers are advised to conduct thorough research and consult with financial advisors before making any investment decisions.
