On Monday, the Pakistan Stock Exchange experienced a significant increase, with its main KSE-100 index surpassing 48,000 points, which is the highest in the past 24 months. Market analysts predict that this positive trend will likely continue in the coming days.
The stock market showed a bullish trend following Pakistan’s recent deal with the International Monetary Fund (IMF). The news about the country’s mineral sector also contributed to further gains.
During the trading day, the benchmark index rose by 1,010.72 points or 2.15%, reaching 48,062.56 points, up from the previous closing value of 47,076.9 points, which itself was a 21-month high.
Since the agreement with the IMF for a $3 billion Standby Agreement, the market has gained over 6,600 points (15.9%).
Moreover, the government’s initiative to organize the Pakistan Mineral Summit, which aims to attract foreign investment in mining projects like Reko Diq, has bolstered investor confidence.
Market analysts believe that the rise in the market can be attributed to positive expectations regarding investments in minerals, and the potential spillover effect on other sectors. Additionally, the strong performance of banks and energy stocks, driven by hopes of energy reforms and resolution of circular debt, has contributed to the overall market surge.
Furthermore, factors such as political stability in the country, expected smooth political transitions, progress with the IMF, partial payment of the gas circular debt, and global interest in investing in Pakistan have all played a role in boosting investor confidence and driving the upward momentum in the stock market.
