The Pakistan Stock Exchange (PSX) witnessed another day of bullish, solid momentum on Thursday, April 4, 2024, as the benchmark KSE-100 index surged to a new all-time high. The index gained an impressive 869.77 points, or 1.3%, to close at 67,756.03, marking its highest-ever closing level. The cement sector primarily drove the market’s upward trajectory, which saw significant gains during the trading session. Investor sentiment remained positive, fueled by expectations of strong corporate earnings and a favourable economic outlook.
The bullish trend at the PSX has been ongoing for several months, with the index consistently reaching new milestones. Earlier in the week, the KSE-100 had already crossed the 67,000 points mark amid a much-awaited rally. Analysts attribute the market’s stellar performance to several factors, including relative economic stability, progress in the privatization of state-owned enterprises, and the government’s commitment to seeking a new, more extensive loan program from the International Monetary Fund (IMF).
Moreover, the continuous increase in foreign currency reserves and the strengthening of the Pakistani rupee have further boosted investor confidence. Foreign investors have also shown increased participation in the market, indicating growing optimism about the country’s economic recovery. Despite the recent correction in the last week of December 2023, market experts remain optimistic about the PSX’s future trajectory.
Projections indicate that the KSE-100 index could reach 75,000 points by the end of 2024, driven by factors such as a smooth power transfer after the elections, a new long-term funding program from the IMF, and an expected fall in interest rates. As the bullish momentum continues at the PSX, with the index crossing the 68,000 points milestone, investors are closely monitoring market developments and corporate earnings to capitalize on potential investment opportunities. The sustained growth of the Pakistani stock market amid challenging economic conditions is a testament to the resilience and potential of the country’s financial sector.