PSX smashes past 100,000 points, setting new record
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A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the PSX, in Karachi, on July 3, 2023. — Reuters
A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the PSX, in Karachi, on July 3, 2023. — Reuters

The Pakistan Stock Exchange (PSX) soared past the 100,000-point milestone on Thursday, marking an all-time high and reflecting strong investor confidence driven by positive economic indicators.

The PSX’s benchmark KSE-100 Index has surged by 1077.25 points or 1.09% to surge to 100,346.50 points during the intra-day trade, up from the previous close of 99,269.25 points.

The stocks had retreated two days back due to political instability, with the market suffering an over 3,500-point crash after PTI’s march on Islamabad turned violent.

However, it bounced back to surge by more than 4,600 points and close at 99,269.25, soon after the party had called off its protest following a government crackdown on protesters.

Market experts credited the historic achievement to several factors, particularly the government’s unwavering commitment to implementing reforms.

Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, told Geo.tv that a fall in yields and lower inflation expectations are also driving the market.

Inflation is projected to slow to 5.8%-6.8% in November, and then further to 5.6%-6.5% in December, the finance ministry said in its monthly economic report.

The KSE-100 Index’s historic milestone also reflects a 60% year-to-date gain driven by a mix of 47% capital gains and 13% dividend yield.

Key contributing sectors include commercial banks, fertilisers, and oil and gas exploration, while top stocks like Fauji Fertilizer and United Bank Ltd played a pivotal role.

The analyst noted that a key factor driving the market’s upward momentum was the government’s consistent adherence to the International Monetary Fund’s (IMF) programme.

Tariq further added that expectations of increased mutual fund investments in equities contributed to the index’s ascent.





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