Historic high: KSE-100 crosses 100,000 as investors turn back focus on economy
- Buying spree towards end of session ensures benchmark settles above 100k for the first time in history
KSE-100 has offered a phenomenal 60% return so far this calendar year. It began 2024 at 62,451 points
Experts say Pakistan’s economic rebound has helped stocks recover
A smooth transition from one IMF bailout to another also revived investor confidence as the previous programme faced a lot of uncertainty. The previous IMF bailout – the $3-billion Stand-By Arrangement – was finalised in June 2023. There has been no looking back for the KSE-100 since then
While not really a positive, an IMF programme gives investors confidence that Pakistan will have an economic roadmap to follow
Corporate earnings, especially the banking sector’s profits, are also a major factor in driving up stock prices at the PSX
Exchange rate stability and a much more tempered pace of inflation have also aided the KSE-100’s rise
Now, experts believe further upside will come from liquidity that would be diverted away from fixed-income asset classes to the PSX as falling interest rates will make them less attractive
Some brokerage houses see the index hitting 125k-135k levels in 2025
The central bank is due to hold its next monetary policy committee meeting on December 16. The current key policy rate stands at 15%. Some experts see another cut of around 200bps in the upcoming meeting.