The Pakistan Stock Exchange (PSX) maintained its bullish momentum from last week.
The benchmark KSE-100 index rose by 675 points to reach 79,120 on Monday.
The KSE-100 index climbed 586.08 points, or 0.74%, to 79,031.04 by mid-morning trading, up from the previous close of 78,445 points on Friday.
This surge reclaimed the title of the world’s best-performing market for the outgoing fiscal year 2023-24, with a remarkable cumulative increase of 89% (or 94% in US dollar terms).
The robust rally began after the International Monetary Fund (IMF) awarded a $3 billion loan program to Pakistan in late June 2023.
Successful reviews of the domestic economy by the IMF, along with the receipt of loan tranches totaling $3 billion during the year and the unlocking of new funds from other creditors, boosted foreign exchange reserves and kept investor sentiment high.
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Additionally, the much-awaited parliamentary elections in February 2024 and the return of stability in the rupee-dollar parity encouraged foreign investors to stage a comeback at the national bourse.
No changes in the capital gains tax (CGT) regime also supported the market’s historic gains of over 3,000 points in a single day following the presentation of the 2024-25 budget this month.
The strong performance of the PSX comes after the index finished nearly flat on the last trading day of the financial year 2023-24 last week, halting its bull run. However, the renewed surge on Monday demonstrates the market’s continued resilience and optimism about Pakistan’s economic trajectory.
