Pakistan Stock Exchange breaches 90,000-mark to reach an all-time high

ISLAMABAD: The Pakistan Stock Exchange (PSX) on Friday crossed 90,000 points to reach an all-time high during the intra-day trading, with analysts attributing it to economic stabilization and political “equilibrium.”
The benchmark KSE-100 index climbed 1141.43 points, or 1.25 percent, to reach a record high of 90,087.41 points as compared to the previous close of 88,945.98 points.
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.