Pakistan Stock Exchange expected to surpass 53,000 points soon

WEB DESK: In a remarkable surge, the Pakistan Stock Exchange (PSX) witnessed a substantial rally on Friday, catapulting by more than 300 points and surpassing the significant 50,700 mark. This surge marked a milestone for the PSX, reaching its highest level since May 2017.

The bullish trend that prevailed throughout the day was propelled by positive indicators, particularly from the macroeconomic sector, providing investors with a stable and confident foundation in the capital market.

The day kicked off on a positive note for the benchmark KSE-100 index, maintaining its bullish momentum consistently.

Analysts pointed to various factors contributing to this surge, chief among them being the anticipation of a favourable outcome from the upcoming monetary policy announcement scheduled for October 30.

According to data released by the PSX, the market closed at an impressive 50,731.86 points, reflecting a notable gain of 366.71 points, or 0.71 per cent, in comparison to the previous closing figure of 50,365.15 points.

Pakistan Stock Exchange highest level in more than 6 years

At its zenith during intraday trading, the market peaked at 50,952.67 points, showcasing the strength of the market’s performance.

The market’s momentum remained robust, indicating a high probability of breaching the 53,000 level, a prospect highlighted by experts.

Investors acknowledged the government’s focused approach to economic management, which bolstered their confidence.

Moreover, there was a growing belief among investors that interest rates might remain stable, despite the current policy rate being set at 22 per cent, as announced on September 14.

The imminent successful review by the International Monetary Fund (IMF) holds significant importance, as it is anticipated to serve as a stamp of approval for the government’s economic policies.

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Such approval could potentially propel the KSE-100 to an all-time high, marking a pivotal moment in the country’s economic landscape.

Additionally, the market’s upward trajectory was supported by the stability of the Pakistani rupee against the US dollar.

Surprisingly, concerns about a potential delay in the elections had minimal impact on market sentiment, with investors displaying confidence and resilience in the face of uncertainties.

This unwavering optimism among investors underscores their faith in the stability and potential of Pakistan’s economic future.