Islamabad, June 8, 2023: The Pakistan Economic Survey 2022-23 released on Thursday revealed that the country’s stock market experienced volatility throughout the fiscal year, primarily influenced by political and economic uncertainties.
The performance of the stock markets remained volatile during July-March FY2023, with various factors impacting investor confidence and influencing their buying and selling activities. The year began with massive flooding that affected multiple sectors of the economy.
Additionally, delays in reaching a Staff Level Agreement with the International Monetary Fund (IMF), political and economic uncertainties, and a high policy rate further eroded investor confidence.
However, the Survey noted that the recently reached Staff Level Agreement with the IMF and the reforms and development initiatives introduced by the Securities and Exchange Commission of Pakistan (SECP) are expected to restore confidence in the market.
These measures are anticipated to generate increased interest in the equity and debt markets of the country. Furthermore, the government’s robust policies are aimed at helping the capital markets withstand risks and maintain a bullish outlook.
The performance of major international stock markets also exhibited volatility during the fiscal year, largely influenced by global financial conditions. The Morgan Stanley Capital International Emerging Market (MSCI-EM) Index, which tracks 24 emerging stock markets, declined by 1.0 percent during July-March FY2023.
Notably, the S&P 500 of the US (8.6%), CAC 40 of France (23.6%), BSE Sensex 30 of India (11.3%), PSEi Composite of the Philippines (5.6%), and FTSE Straits Times of Singapore (5.1%) experienced increases. Conversely, the Shanghai Composite of China, VN30 Index of Vietnam, Hang Seng of Hong Kong, and Kuala Lumpur Composite Index of Malaysia declined by 3.7 percent, 14.0 percent, 6.7 percent, and 1.5 percent, respectively.
Within Pakistan, the KSE-100 index recorded a decline from 41,540.8 points to 40,000.8 points between June 30, 2022, and March 31, 2023. The index reached its highest closing point of 43,676.6 on August 17, 2022, while its lowest closing point was 38,342.2 on January 17, 2023.
As of March 31, 2023, there were 526 listed companies with a market capitalization of Rs 6,108 billion. Throughout July-March FY2023, corporations raised Rs 99.0 billion by issuing 20 debt securities, while 117 previous corporate debt securities worth Rs 826.6 billion remained outstanding.
Additionally, during July-March FY2023, Pakistan Mercantile Exchange Limited witnessed the trading of 2.96 million lots of various commodities futures contracts, including gold, crude oil, and US equity indices, with a total value of Rs 3.49 trillion.
READ MORE: Pakistan Economic Survey 2022-23: Restrictions Impede Manufacturing Growth
