A great way to start the new year! Pakistan Stock Exchange: 64,000 Mark is Crossed
A strong start to 2024 is reflected in the recent jump in the Pakistan Stock Exchange (PSX), as evidenced by the KSE-100 index’s stunning gain of 1,580 points. The market’s upward trend in 2023, when the KSE 100 Index saw a notable turnaround and produced an astounding 55% gain in Rupee terms, is being built upon by this strong momentum.
The Pakistani stock market is buoyant due to a number of causes. A significant factor has been the strengthening local currency, with the Pakistani Rupee maintaining its value versus the US Dollar and other currencies. Furthermore, a drop in fuel prices has helped to maintain economic stability. This economic stability is further supported by the gold rate, which on the first trading day of 2024 stood at Rs219,200 a tola for 24-carat gold.
Investor confidence was bolstered by the successful handover of power to the temporary administration and the restart of the IMF program in 2023, which drove the turnaround. The market kept moving higher, hitting a record high of 66,426 in December. There was a notable increase in foreign portfolio investments during the year.
Anticipations and other factors influence the market’s optimism. Positive investor mood is influenced by the energy sector’s performance, projected dividend payments, and the government’s will to address circular debt. The good prognosis is further enhanced by expectations of higher institutional investment in stocks, which is motivated by the possibility of monetary easing in the upcoming months.
Market confidence is further bolstered by the Central Bank’s disclosure of a significant increase in foreign exchange reserves, which reached $7.8 billion in late December. This rise is credited to funding from bilateral and multilateral sources, demonstrating outside support for Pakistan’s stable economy.
Finally, it can be said that the PSX’s current rise builds on a solid base that was laid in 2023 and reflects the economic recovery and upbeat investor confidence fueled by a number of variables, including as lowering gasoline prices, stable currency values, and encouraging government efforts.
I am a dedicated student currently in my seventh semester, pursuing a degree in International Relations. Alongside my academic pursuits, I am actively engaged in the professional field as a content writer at the Rangeinn website.
