PSX hits six-year high record

PSX hits six-year high record

On Thursday, the Pakistan stock market experienced a strong rally, breaking the 49,000 points threshold after a six-year gap. During the same period, the Pakistani rupee also recovered impressively against the US dollar, reaching Rs287.83 in inter-bank trade.

The benchmark Karachi Stock Exchange (KSE) 100 Index at the Pakistan Stock Exchange (PSX) rose by over one percent, equivalent to more than 600 points, reaching 49,403 points before mid-day.

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According to Samiullah Tariq, the Head of Research at Pak-Kuwait Investment Company, the increase in PSX can be attributed to several factors, including improvements in the balance of payment outlook following the IMF’s $3 billion loan program, attractive stock valuations in terms of price-to-earning-ratio (PE), and companies’ owners buying back their own shares.

Muhammad Sohail, the CEO of Topline Securities, commented on the achievement, highlighting that the market had gained 20% in just five weeks, rising from 41,000 points before Pakistan received the IMF’s $3 billion loan in late June 2023.

Furthermore, experts believe that both the stock market and the rupee have benefited from the IMF’s loan program, enabling the country to focus on economic activities.

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The State Bank of Pakistan projected a 2-3% improvement in Pakistan’s economy during the current fiscal year of 2023-24. Additionally, it is projected that Pakistan’s foreign exchange reserves, held by the SBP, will surpass $10 billion by June 30, 2024, while the current account deficit is expected to remain under control at 0.5-1.5% of the Gross Domestic Product (GDP) in FY24.

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