The Pakistan Stock Exchange (PSX) reached an unprecedented milestone on Thursday noon, crossing the 82,000-point mark for the first time in history.
This surge comes on the back of positive economic developments, including an expected IMF deal at the end of the month, a reduction in interest rates, and a current account surplus, all of which have bolstered investor confidence.
The market recorded a strong bullish sentiment, breaking its previous record set earlier this year on July 18, when the KSE-100 Index peaked at 81,939 points. During today's trading session, the index skyrocketed by 1,539 points, reaching a historic high of 82,000 points.
Also Read: Pakistan’s current account swings to $75m surplus in August
Analysts attribute this record-breaking performance to a combination of favourable economic indicators, including the government's negotiations with the IMF for a loan programme aimed at stabilizing the economy. Additionally, the reduction in interest rates has encouraged investment in equities, further driving the market's upward momentum.
Earlier in the day, the PSX witnessed a significant upward trend, with the benchmark index crossing the 81,000-point mark for the first time in over two months. The market opened with a strong bullish sentiment, driven by investor confidence, and continued to gain momentum throughout the trading session.
As of midday trading, the KSE-100 Index had surged by 1,202 points, reaching 81,663 points. This marks a notable recovery for the market, which had been hovering below the 80,000-point threshold for the past two months and 10 days.
Also Read: IMF to discuss Pakistan’s $7 billion loan request on Sept 25
The rally began right from the start of the business day, with the index initially climbing by 705 points to reach 81,166 points. The upward trajectory continued as the session progressed, with the index gaining an additional 1,094 points, ultimately closing at 81,555 points.
This positive trend comes as Pakistan’s economy received a welcome boost, with the country's current account recording a surplus of $75 million in August. This reversal of fortunes is attributed to the record increase in remittances from overseas Pakistanis.
According to data released by the State Bank of Pakistan (SBP), the current account deficit in July stood at $246 million, making the August surplus a remarkable turnaround. This development is expected to bring stability to Pakistan's economy.
