ISLAMABAD: The Pakistan Stock Exchange (PSX) crossed the 90,000-point mark during intra-day trading on Friday, reaching an all-time high before settling just below the milestone, with analysts attributing the bullish trend to economic stabilization and political equilibrium.
The benchmark KSE-100 index climbed 1,141 points, or 1.25 percent, to reach a record high of 90,087 points during the day. By the close of the session, however, it eased to 89,993.96 points, up by 1,047.98 points, or 1.16 percent, from the previous close.
Analysts say an equilibrium in politics, economic stability and reducing interest rates, both locally and globally, were ushering in liquidity into Pakistani equities.
“If Pakistan continues to stick to its razor-sharp focus on the economy, it may lead to a multi-year boom at the KSE100,” Raza Jafri, head of equities at the Karachi-based Intermarket Securities, told Arab News.
Topline Securities, a leading brokerage house in Pakistan, said the crossing of 90,000-mark by Pakistani stocks was one of the “fastest record gains of 125 percent in the last 18 months.”
The development comes as the South Asian nation’s economic indicators continue to improve after it secured a $7 billion, 37-month bailout package from the International Monetary Fund (IMF) last month. Pakistan’s central bank also cut its key policy rate by 200 basis points to 17.5 percent in September, making it the third straight reduction since June.
Last year, Pakistan narrowly avoided a sovereign default when it clinched a $3 billion IMF loan program. The country has suffered a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation.
Pakistan Stock Exchange crosses 90,000 points, hits record high before closing below milestone
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Pakistan Stock Exchange crosses 90,000 points, hits record high before closing below milestone
- KSE-100 index climbed 1,141, or 1.25 percent, to reach an all-time high of 90,087 points
- Bullish trend fueled by ‘economic stabilization’ and ‘equilibrium in politics,’ analyst says