WEBDESK: On Thursday, the benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) has reached a new record of 125,000 points, in its history. This history-making achievement illuminates the increasing investor confidence and optimism in the economy of Pakistan.
Market analysts attribute the recent rise in the PSX to a number of reasons, such as favourable government policies, an anticipation of lower interest rates, and better corporate earnings in prime sectors.
In early trade, the index advanced by 1,138 points to touch 125,490, up by almost 0.91 percent. This is after a bullish Wednesday when the index gained 2,328 points to finish at 124,352.68 – up 1.91 percent on the last close of 122,024.44.
The PSX has exhibited a consistent growth in the last couple of months. The index had earlier hit new highs in the year following a massive power tariff reduction that saw both the business and the investors appreciate the move. This step assisted in cutting down the cost of production and enhancing the profit level, especially in the industrial sectors.
Finance Minister Muhammad Aurangzeb, speaking at a post-budget conference on Wednesday, stated that the government had agreed with the International Monetary Fund (IMF) on budgetary targets, adding that an additional Rs500 billion in revenue measures could be introduced next fiscal year if enabling legislation was not passed by parliament.
Sectors like banking, oil & gas, power, and technology played a major role in the recent rally. Institutional investors, both local and foreign, have shown increased interest in the PSX, pushing stock prices upward and improving overall market sentiment.
Global markets remained subdued as renewed geopolitical tensions and concerns over US-China trade dynamics dampened investor sentiment. MSCI’s Asia-Pacific index outside Japan dipped 0.3%, while Japan’s Nikkei fell 0.7%. In Hong Kong, the Hang Seng Index lost 0.74% following a strong session earlier in the week.
