Rally reflects growing investor confidence
and economic recovery. The index closed
at 100,082.77 points, gaining 813.52 points
Business Reporter
Karachi: The Pakistan Stock Exchange (PSX) marked a historic milestone on Thursday as the KSE-100 Index surpassed the 100,000-point barrier for the first time, reflecting growing investor confidence and economic recovery. The index closed at 100,082.77 points, gaining 813.52 points from its previous close of 99,269.25.
Record Growth Amid Economic Optimism
The market’s historic surge comes amidst declining inflation, reduced interest rates, and improved liquidity. Over the past 17 months, the KSE-100 has delivered an extraordinary 142% return, while five-year data shows annualized returns of 20.9% in PKR terms and 7.7% in USD.
Prime Minister Shehbaz Sharif commended the PSX’s performance, stating it reflects investor trust in the government’s fiscal policies. He praised his economic team for fostering stability in challenging times.
Leadership Remarks on Milestone
PSX MD and CEO Farrukh H. Sabzwari hailed the achievement, calling it a “proud moment” for Pakistan’s capital market. He emphasized the need for sustainable growth, retail investor participation, and broadening the base of listed companies, especially in underrepresented sectors.
“Expanding inclusivity and increasing market depth will support Pakistan’s economic objectives,” he said, highlighting the PSX’s commitment to improving Pakistan’s market capitalization-to-GDP ratio.
Factors Fueling the Rally
Market experts attribute the rally to:
- Declining Inflation: Inflation dropped to 8.7% in the first four months of FY2025, down from 28.5% in the previous year.
- Policy Rate Cuts: The State Bank of Pakistan (SBP) reduced the policy rate by 250 basis points to 15%.
- Investor-Friendly Policies: Removal of the Minimum Profit Rate (MPR) for conventional banks and a new IMF loan have boosted investor sentiment.
Celebrations at PSX
Sindh Governor Kamran Tessori visited the PSX to celebrate the occasion and praised its management for achieving this milestone. He was welcomed by Farrukh H. Sabzwari and the PSX team, who emphasized the role of collective efforts in the achievement.
A Resilient Stock Market
The KSE-100 Index’s 17-month rally from 40,000 to 100,000 points reflects resilience and investor confidence. Mohammed Sohail, CEO of Topline Securities, noted the 150% return in this period and underscored that the PSX remains undervalued, trading at a price-to-earnings (PE) ratio of 5x, compared to a historical average of 7x.
Conclusion
The KSE-100 Index crossing 100,000 points symbolizes Pakistan’s economic potential and the stock market’s recovery from recent volatility. Analysts are optimistic about sustained growth, driven by robust economic policies, improving investor confidence, and favorable market conditions.
Keywords: KSE-100 Index, Pakistan Stock Exchange, PSX, Inflation Decline, Policy Rate Cut, Investor Confidence, Stock Market Milestone, Economic Recovery.
