Pakistan Stock Exchange Reaches Historic Milestone, Surpasses 100,000 Points

The Pakistan Stock Exchange (PSX) reached a historic milestone on Thursday, crossing the 100,000-point mark for the first time ever. The KSE-100 Index saw a remarkable 1.09% increase, gaining 1,077.25 points to settle at 100,346.50 points, up from 99,269.25 points at the previous close.

This surge follows a period of market volatility, where the PSX had seen a drop of over 3,500 points amid political unrest. However, the market rebounded strongly, rising by more than 4,600 points after the protests were called off.

Experts attribute the milestone to several factors, including government reforms, lower inflation expectations, and a decline in yields. The finance ministry has projected that inflation will decrease to between 5.8%-6.8% in November, and further to 5.6%-6.5% in December, contributing to positive market sentiment.

The KSE-100 Index has gained 60% year-to-date, with 47% of that growth coming from capital gains and 13% from dividend yields. Key sectors driving this growth include commercial banks, fertilizers, and oil and gas exploration, with major stocks such as Fauji Fertilizer and United Bank Ltd playing a prominent role.

Analysts also point to the government’s commitment to the International Monetary Fund (IMF) program and the anticipated increase in mutual fund investments in equities as critical factors driving the market’s upward trajectory.