Stock market continues bullish momentum with Friday’s opening

KARACHI: The Pakistan Stock Exchange (PSX) breached through the 100,000 points mark yesterday (Thursday) to close at 100,082.77 points. Friday morning brought more gains for the benchmark KSE-100 index when it jumped over 310 points right after opening.

Though there were some fluctuations observed in the early minutes of trading, with the KSE-100 jumping to 100,653.64 points and touching the low of 100,209.25 points, but overall the trading trend remained positive.

Stock market’s impressive rally is backed by strong performance data

Market analysts are of the view that this growth is not only back by strong performance data, but it is also likely sustainable to minor shocks from the external environment. PSX has registered a 25-year compound annual growth rate (CAGR) of 19.1 per cent, with an increase in P/E ratio from 2.6x to 5.5x, analyst reports said on Thursday.

However, Afroz Merchant, from Merchant (Investment) Ltd., while speaking to HUM News English said that the Pakistan’s stock market needs investors who are interested in dividends and still have the holding capacity of at least 10 years. He said, “for a long-term stability and growth of the stock market, Pakistani investors need to be educated on the companies that pay dividends and steer the investment towards long-term holdings”.

Around 10 AM, the index looked like this: