Shares at the Pakistan Stock Exchange surged more than 900 points to hit the historic 100,000 milestone on Thursday.
The benchmark KSE-100 surged 947.32, or 0.95 per cent, to stand at 100,216.57 points from the previous close of 99,269.25 points at 9:35am.
The record comes two days after the PSX saw brief uncertainty due to political tensions, recovering tremendously the next day as it witnessed the highest single-day gain on Wednesday.
Mohammed Sohail, chief executive of Topline Securities, said, “A remarkable 150pc return from 40k to 100k in just 17 months!”
“New IMF (International Monetary Fund) loan coupled with fiscal and monetary discipline improving investors sentiments,” he highlighted, adding that faster-than-expected fall in inflation and interest rates added cash liquidity to the stock market.
Despite the rally, Sohail noted that the market’s price-to-earnings ratio still traded at 5x compared to the historical average of 7x.
“From less than 1,000 points in the late 1990s to 100,000 today, the market is up 100 times,” he pointed out, adding that this happened after “25 years of ups and downs, bull runs and bear runs, optimism and pessimism”.
“Despite challenges, the market has generated following returns in last 25 years,” he noted, adding that there’s a 20pc annual return in rupee and a 13pc annual return in the greenback which stood as a “testament to resilience and potential”.
More to follow
