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KARACHI:
The Pakistan stock market maintained a powerful rally on Thursday and crossed the threshold of 49,000 points after a gap of six years.
Meanwhile, the Pakistani rupee also made a smart recovery of Rs1.55 to Rs287.83 against the US dollar in inter-bank trade before mid-day today (Thursday).
At the Pakistan Stock Exchange (PSX), the benchmark Karachi Stock Exchange (KSE) 100 Index increased by over one percent, or over 600 points, to 49,403 points before mid-day.
Speaking to The Express Tribune, Pak-Kuwait Investment Company Head of Research Samiullah Tariq said, “reasons for the increase in PSX are improvement in the balance of payment (BOP) outlook after the International Monetary Fund’s (IMF) latest loan programme of $3 billion, very attractive valuations of stocks in term of price-to-earning-ratio (PE), and buy-back of their own companies’ shares by the companies’ owners these days”.
Moreover, he added, the rupee-dollar exchange rate is moving with demand and supply, as imports are being opened up.
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Commenting on the development, Topline Securities CEO Muhammad Sohail said “another milestone has been achieved. Pakistan benchmark stock market index crosses 49,000 points”.
“The market has gained 20% in just five weeks to over 49,000 points compared to 41,000 points before Pakistan received IMF’s latest loan programme of $3b in late June 2023,” he said.
Other experts said the stock market and rupee have both gained in the wake of IMF’s latest loan programme. The loan program has enabled the country to focus on economic activities.
The State Bank of Pakistan (SBP) projected on Monday that Pakistan’s economy would improve by 2-3% in the current fiscal year of 2023-24.
Pakistan’s foreign exchange reserves, as held by SBP, are projected to cross over $10b by the end of the current fiscal year on June 30, 2024, while the current account deficit is likely to remain under control at 0.5-1.5% of Gross Domestic Product (GDP) in the FY24.
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