The Pakistan Stock Exchange’s (PSX) benchmark index, the KSE-100, has surged to an all-time high, surpassing the previous record set 6.5 years ago.
This impressive achievement reflects renewed investor confidence and optimism in Pakistan’s economic prospects.
Record-Breaking Surge: KSE-100 Reaches New Heights
The PSX’s benchmark index, KSE-100, witnessed an extraordinary surge on Friday, surpassing its previous record of 52,800 points, a level not seen in over six years.
The benchmark index’s journey for the day began at 52,656.76 points, and it swiftly soared to a new high of 52,917 points by 9:40 AM, marking a 0.5 percent increase.
A Deeper Perspective: Real Value Comparison
While the KSE-100 has returned to its historic high, it’s essential to recognize that its real value remains around one-third of its peak in 2017.
At 10:40 AM, the benchmark index surged by 408 points, reaching 53,064 points with a remarkable 0.8 percent increase.
Market Analysis and Expert Insights
Mohammed Sohail, CEO of Topline Securities, emphasized the significance of the PSX’s recent achievement, highlighting that it represents the “Index (total return) with dividends and bonuses.”
He pointed out that despite the record-breaking performance, valuations remain low, standing at four times earnings compared to a PE of 12 in 2017.
Future Outlook: Economic and Political Stability
Sohail also mentioned that reducing economic and political uncertainties could propel the market to new highs.
This statement underscores the crucial role of stability and predictability in driving investor confidence and the stock market’s long-term growth.
The PSX’s record-breaking surge to an all-time high is a testament to Pakistan’s resilience and potential to attract investment. This achievement marks a significant milestone.
It also serves as a reminder of the importance of fostering economic and political stability to sustain and further enhance the country’s economic prospects. With the right conditions in place, Pakistan’s stock market has the potential to reach even greater heights in the future.