KARACHI: The Pakistan Stock Exchange (PSX) reached an unprecedented milestone on Thursday, with the benchmark KSE-100 index surpassing the 100,000 barrier for the first time in history to close at 100,082.77 points.
The index stood at 100,334.91 after gaining 1,065.66 points by 10:48 AM, recovering from its biggest-ever decline of 3,506 points, or 3.57 percent, earlier this week.
The market reached 100,082.77 points when trading closed, up by 813.52 points or 0.82 percent from the last close, official data said.
The market’s rally is attributed to a combination of positive economic developments, including Pakistan’s new $7 billion loan agreement with the International Monetary Fund (IMF), which has bolstered investor confidence.
The IMF’s disbursement of the first tranche of approximately $1 billion in September, along with fiscal and monetary reforms, has improved market sentiment.
“A remarkable 150 percent return from 40k to 100k in just 17 months,” Mohammad Sohail, CEO of Topline Securities, exclaimed in a social media post.
“New IMF loan coupled with fiscal and monetary discipline [is] improving investor sentiment. Moreover, faster than expected fall in inflation and interest rates [is] adding cash liquidity to the stock market.”
Arif Habib Limited, one of Pakistan’s largest securities brokerage and research firms, described the rally as a “historic milestone.”
“Key factors driving this outstanding performance include: i) economic and political stability, ii) improving liquidity, iii) strong fundamentals, and iv) continued support from the ongoing IMF program,” the firm said on social media platform X.
The PSX’s historic rise coincides with a steady decline in inflation and interest rates, which have provided liquidity to the market.
Pakistan’s inflation dropped to 12.5 percent in October, from its peak of over 38 percent earlier this year, creating a more favorable environment for investors.
Additionally, the three-day state visit of Belarusian President Aleksandr Lukashenko to Pakistan has contributed to optimism. The two nations signed multiple agreements aimed at boosting trade and investment, signaling Pakistan’s efforts to stabilize its economy and attract foreign investment.
The PSX’s growth trajectory reflects its resilience over time.
“From less than 1,000 points in the late 1990s to 100,000 today, market is up 100 times,” Sohail said, adding the milestone was a testament to the ups and downs, bull runs and bear runs, optimism and pessimism the market had endured over the last 25 years.”
He maintained the PSX’s performance underscored the resilience and potential of Pakistan’s financial sector, even amid ongoing economic and political challenges.
Prime Minister Muhammad Shehbaz Sharif congratulated the nation on the PSX crossing 100,000 points for the first time.
“This milestone showcases the trust of the business community and investors in our policies,” he said in a statement. “It is a testament to the hard work of our economic team and officials working to promote investment in the country.”
The premier also reaffirmed his commitment to ensuring economic stability and national progress.
