On Monday, the Pakistan Stock Exchange (PSX) reached a historic milestone as the benchmark KSE-100 index surged past the 78,000 mark during intraday trading. This achievement signals a significant moment in Pakistan’s financial market, reflecting a robust investor confidence and optimism.
The KSE-100 index peaked at an unprecedented 78,115 points, marking a substantial increase of 1,409 points from its previous close of 77,213 by 10:55 AM. This surge underscores the growing positive sentiment among investors, driven by several key factors.
Analysts attribute this remarkable rise primarily to the government’s efforts towards securing a deal with the International Monetary Fund (IMF), following the recent budget announcement. The anticipation of an IMF agreement has bolstered market confidence, leading to heightened buying activity in the stock market.
Finance Minister Muhammad Aurangzeb’s presentation of the 2024-25 budget has also played a pivotal role in shaping market dynamics. The budget outlines ambitious economic targets, including a targeted GDP growth rate of 3.6% and an inflation rate of 12%. These goals are complemented by substantial financial commitments across various sectors, indicating the government’s strong emphasis on stimulating economic growth and addressing social welfare needs.
A key highlight of the budget includes significant allocations towards development projects, pensions, and salaries. Notably, the government has allocated Rs597 billion for the Benazir Income Support Programme (BISP), aimed at providing crucial financial assistance to disadvantaged segments of society.
Moreover, an impressive Rs1,400 billion has been earmarked for the Public Sector Development Programme (PSDP), intended to fund a diverse range of infrastructure and development projects nationwide.
The market’s positive response to these budgetary measures is evident in the surge of the KSE-100 index. Investors are optimistic that these initiatives will foster economic stability and growth, thereby incentivizing further investment in the stock market.
In conclusion, the PSX’s record-breaking performance reflects a convergence of factors including government policies, economic targets, and investor sentiment, highlighting a promising outlook for Pakistan’s financial markets amidst ongoing economic reforms and development initiatives.