Pakistan stock market breaches 133,000 points barrier as investors turn to equities
The benchmark KSE-100 index rose by 1,907.53 points or 1.45 percent to reach 133,856.59 points at 12:31 p.m. from the previous day's close of 131,949.06 points, according to the PSX website.
Pakistan's state broadcaster said the stock market's upward trend reflects the business community's growing confidence in the government's economic policies.
'The top-most factor contributing to market rally is conversion of fixed income funds to equities,' Shankar Talreja, head of research at Karachi-based brokerage company Topline Securities, told Arab News.
'Stocks generating over nine percent of the dividend yield have contributed most to the index rally,' he continued, 'This is because this dividend yield matches the fixed income rate and any capital gain on these stocks would be cherry on the top.'
He noted that the market has been responding to improving macroeconomic indicators, adding that the State Bank of Pakistan's reserves climbed to $14.5 billion at the end of June.
'The regional and geopolitical issues also subsided last month which has further given confidence to local investors,' Talreja added, referring to the Pakistan-India, Iran-Israel armed conflicts.
'We expect the index to touch 160,000 by June 2026.'
The development comes after the PSX breached the 130,000 points barrier last week to close at an all-time high, with experts attributing the surge to low inflation and surging crude oil prices.
Pakistan's stocks have surged as Islamabad moves to consolidate its financial recovery after years of economic turbulence. In recent years, the country has implemented tough structural reforms under International Monetary Fund loan programs aimed at reducing fiscal deficits and restoring investor confidence.
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