Karachi, November 24, 2023 – The Pakistan stock market soared to new heights on Friday, breaching the 59,000-point level for the first time in the country’s history.
The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) closed with a gain of 186 points, reaching an unprecedented 59,086 points, surpassing the previous day’s closing figure of 58,900 points.
Financial analysts attribute this remarkable surge to multiple factors, with the recent agreement with the International Monetary Fund (IMF) for a $700 million tranche playing a significant role. The positive sentiments were further boosted by the announcement made a day earlier by the finance minister, stating that an additional $1.5 billion would be received shortly after the scheduled IMF disbursement in December 2023.
Ismail Iqbal Securities analysts observed that the equity market demonstrated a range-bound closure for the day. The index crossed the historic 59,000-point mark in the first trading session, experiencing some profit-taking towards the end of the day, attributed to the culmination of the rollover week.
While trading volumes slightly decreased to 289 million shares, compared to the previous session’s 307 million shares, the market’s major sectors contributed significantly to the overall surge. Commercial banks, fertilizer, and textile composite sectors emerged as the primary contributors during the session, collectively adding 229 points to the index.
The historic rally in the stock market reflects investor confidence in the economic outlook of the country, fueled by positive developments such as the IMF agreement and anticipated financial inflows. The influx of funds is expected to strengthen the country’s financial position and foster economic growth.
Investors and market participants are closely monitoring the economic landscape as Pakistan positions itself as an attractive destination for investments. The positive trajectory of the stock market is viewed as a testament to the resilience and potential of Pakistan’s economy, attracting both domestic and international investors.
As the country continues on this upward trajectory, market experts emphasize the need for sustained economic reforms and policy measures to ensure long-term stability and attractiveness for investors. The optimism surrounding the stock market’s historic rally is expected to have a cascading effect on various sectors, contributing to the overall economic development of Pakistan.
