Pakistan’s stock market closes above 56,500 mark for the first time

WEB DESK: The Pakistan Stock Exchange (PSX) sustained its upward trajectory, reaching a historic milestone as the benchmark KSE-100 Index surpassed the 56,500 level for the first time.

Monday’s trading session witnessed a substantial gain of over 1,100 points, culminating in the benchmark index concluding at 56,523.58, reflecting a notable increase of 2.04 per cent.

The preceding week had already marked a significant achievement for the KSE-100 index, breaching the historic 55,000 level and closing at an unprecedented high of 55,391.37 points.

This ascent resulted in a robust week-on-week net gain of 2,268.33 points, or 4.27 per cent.

Monday’s trading activity showcased widespread buying across various sectors, notably cement, chemical, commercial banks, power generation and distribution, property, oil and gas exploration, and OMCs, all contributing to the positive market dynamics.

Investor attention is keenly focused on the ongoing discussions between the government and the International Monetary Fund (IMF).

Read more: Interbank closing: Pakistani rupee witnesses 15th consecutive decline

Deliberations with the IMF and FBR centre around implementing structural adjustments in tax collection, with considerations for introducing taxes on agriculture, real estate, and the retail sectors.

Additionally, encouraging macroeconomic indicators have bolstered market confidence.

Notably, the country’s current account deficit saw a significant decline, plummeting to $8 million in September 2023, compared to $360 million in the same month last year.

Furthermore, a noteworthy reduction in CPI-based inflation has added to the positive sentiment prevailing in the stock market.