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Positive Surge in PSX Benchmark Index:
On Thursday, the Pakistan Stock Exchange’s benchmark KSE-100 index made a significant breakthrough, surpassing the 47,000 level for the first time since November 2021. The index achieved an intraday peak of 47,393.47 points, eventually settling at 47,076.99 points after a gain of 394.47 points. This surge indicates a growing confidence in the country’s economic prospects and positive market sentiment.
IMF Deal and Economic Impact:
According to Arif Habib Limited, the PSX has witnessed an impressive increase of 5,624 points, equivalent to a remarkable 13.6% gain, since the staff level agreement with the International Monetary Fund (IMF) was reached on June 29. The IMF deal has provided stability and confidence in Pakistan’s economic policies, attracting investors and bolstering market performance.
Foreign Investments and Reserve Inflows:
Mohammed Sohail, the CEO of Topline Securities, highlighted several factors contributing to the market rally. Besides the IMF deal, the influx of dollars from friendly nations and growing foreign exchange reserves have played a crucial role in driving the stock market’s upward trajectory. The foreign portfolio investors have also shown renewed interest, with foreign corporates making a net buying of approximately $18 million in July, signaling foreign investors’ confidence in Pakistan’s economic recovery.
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Decline in Inflation and Positive Economic Indicators:
Another factor contributing to the PSX’s recent success is the decline in inflation, which has positively impacted consumer spending and overall economic growth. The government’s efforts to curb inflation have contributed to a stable economic environment, encouraging investments and driving market confidence.
Finance Minister Ishaq Dar’s Acknowledgement:
Finance Minister Ishaq Dar acknowledged the positive development in the stock market through a tweet, expressing satisfaction with the market’s performance and its contribution to the overall economic growth of the country.
Conclusion:
The Pakistan Stock Exchange’s benchmark KSE-100 index surpassing the 47,000 mark for the first time since 2021 marks a significant achievement for the country’s economy. The IMF deal, foreign investments, decline in inflation, and positive economic indicators have collectively contributed to the market’s robust performance. This growth reflects a growing investor confidence in Pakistan’s economic recovery and signals positive prospects for the future.
