The Pakistan Stock Exchange (PSX) achieved an unprecedented milestone as the market crossed the 81,500 mark for the first time in its history.
The bullish trend showed a remarkable rally that pushed the KSE-100 index up 600 points to a new high of 81,700 points.
At the start of the trading day after a two-day break, the stock market showed a strong bullish trend. This upward momentum caused the stock market to initially exceed the 81,500 level, an all-time high for the PSX. The KSE-100 index rose by 380 points to reach 81,525 points at the start of trading.
Market analysts attribute this upward trend to a combination of positive investor sentiment and favorable economic indicators. The rise in the stock market reflects growing confidence in the country’s economic prospects and the performance of key sectors.
These positive trends come despite the Asian Development Bank (ADB) forecasting high inflation in Pakistan this year, according to its latest Asian Development Outlook. While inflation rates are expected to remain high, the report suggests a potential reduction in Pakistan’s debt burden.
The ADB report highlights that Pakistan’s economic growth rate was 2.4% in the last fiscal year, with agriculture playing a significant role in this growth. Despite persistent inflation, the rate fell from 38% to 11.8%, leading to a reduction in the base rate.
In addition, Fitch Business Monitor International expressed concern that the current political upheaval in Pakistan could disrupt the country’s economic stability.
The report highlights that the political climate remains uncertain, with the Pakistan Tehreek-e-Insaaf (PTI) founder likely to remain imprisoned despite several successful court appeals.
The International Monetary Fund (IMF) also said on Tuesday that Pakistan’s economic growth rate in the current fiscal year is expected to reach 3.5%. The IMF’s updated Global Economic Outlook reports that the government has set an economic growth target of 3.6% in the new budget.
