The Pakistan Stock Exchange (PSX) marked a significant milestone, surpassing the 109,000-point threshold, driven by improving macroeconomic conditions, particularly a boost in the country’s foreign reserves.
The KSE-100 Index soared by 814.99 points, or 0.75%, closing at 109,053.95.
As of November 29, 2024, Pakistan’s total liquid foreign reserves stood at $16.6 billion, according to the State Bank of Pakistan (SBP). This figure includes $12 billion held by the SBP, which saw an increase of $620 million over the week, supported by a $500 million inflow from the Asian Development Bank (ADB).
Additionally, the Saudi Fund for Development (SFD) has extended the maturity of a $3 billion deposit, which was set to expire on December 5, 2024, by another year. This decision followed discussions between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammad Bin Salman at the “One Water Summit” in Riyadh.
Another factor contributing to the market’s upward trajectory is the inflation rate, which fell to 4.9% in November, the lowest since 2017. This decline provides leeway for potential monetary easing, especially given the significant drop from last year’s peak of 38%. Analysts anticipate that the SBP may reduce interest rates by at least 200 basis points in its upcoming meeting on December 16, bringing the total reduction to 900 basis points since June.
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Pakistan’s benchmark index settles at new all-time high of 90,864
KSE-100 index reaches new milestone, surpassing 88,000 points
As the PSX nears the 110,000-point mark, market analysts express optimism for continued growth. With strong macroeconomic indicators, increasing foreign reserves, and the expectation of a substantial rate cut, the capital market appears well-positioned for sustained momentum as 2024 comes to a close.
