The Pakistan Stock Exchange has crossed a historic milestone, crossing 100,000 points
The Pakistan Stock Exchange (PSX) on Thursday crossed a historic milestone by crossing the 100,000-point mark for the first time. The KSE-100 index saw a significant gain of 1.09 percent, up 1,077.25 points to close at 100,346.50 points, up from the previous close of 99,269.25 points.
The rise follows a period of market volatility, where the PSX saw a drop of more than 3,500 points amid political unrest. However, after the protests ended, the market rallied strongly, rising more than 4,600 points.
Experts attribute this milestone to a number of factors, including government reforms, lower inflation expectations, and declining productivity. The Finance Ministry has estimated that inflation will moderate to between 5.8%-6.8% in November and further to 5.6%-6.5% in December, which will support positive market sentiment.
The KSE-100 index has gained 60% year-to-date, with 47% of this growth coming from capital gains and 13% from dividend yield. Key sectors driving this growth include commercial banks, fertilizers, and oil and gas exploration, with major stocks such as Fuji Fertilizer and United Bank Limited playing prominent roles.
Analysts also point to the government’s commitment to the International Monetary Fund (IMF) program and an expected increase in mutual fund investment in equities as key factors driving the market’s upward momentum.
