On Thursday, the Pakistan stock market exhibited a robust upward trend, surpassing the significant milestone of 49,000 points, a level not witnessed in the past six years.
In inter-bank trade, the Pakistani rupee showed a notable rebound of Rs1.55, reaching Rs287.83 against the US dollar at mid-day on Thursday.
The benchmark Karachi Stock Exchange (KSE) 100 Index witnessed a notable surge of more than one per cent, equivalent to an increase of over 600 points, reaching a level of 49,403 points before mid-day at the Pakistan Stock Exchange (PSX).
According to Samiullah Tariq, the Head of Research at Pak-Kuwait Investment Company, the recent upsurge in the Pakistan Stock Exchange (PSX) can be attributed to several factors. These include positive developments in the balance of payment (BOP) outlook following the International Monetary Fund’s (IMF) recent loan programme amounting to $3 billion. Additionally, the stocks in the market are currently deemed highly appealing due to their favourable price-to-earnings ratio (PE). Furthermore, there has been a notable trend of companies repurchasing their own shares, which is also contributing to the market’s growth.
Furthermore, the individual stated that the fluctuation of the rupee-dollar exchange rate is influenced by the forces of demand and supply, particularly due to the liberalisation of imports.
According to Muhammad Sohail, the CEO of Topline Securities, the recent progress signifies yet another significant accomplishment. The main stock market index in Pakistan has surpassed the 49,000 points level.
According to the individual, the market has experienced a notable increase of 20% over a span of five weeks, reaching a value beyond 49,000 points. This growth can be contrasted with the market’s previous value of 41,000 points prior to Pakistan’s receipt of the International Monetary Fund’s most recent loan programme, amounting to $3 billion, in late June 2023.
According to some experts, the stock market and the rupee value have both experienced positive growth following the implementation of the International Monetary Fund’s most recent loan programme. The implementation of the loan programme has facilitated the nation’s concentration on economic endeavours.
According to the State Bank of Pakistan (SBP), it has been estimated that Pakistan’s economy will grow 2-3% during the ongoing fiscal year of 2023-24.
It is anticipated that the foreign exchange reserves of Pakistan, which are under the jurisdiction of the State Bank of Pakistan (SBP), will surpass $10 billion by the conclusion of the ongoing fiscal year on June 30, 2024. Furthermore, it is expected that the current account deficit will be effectively managed and maintained at a range of 0.5-1.5% of the country’s Gross Domestic Product (GDP) during the fiscal year 2024.