As the world grapples with the economic impact of the global pandemic, the Pakistan Stock Exchange (PSX) has seen an unexpected surge in activity. Located in the capital city of Islamabad, the PSX has experienced an impressive increase in trading volumes and market capitalization, bucking the trend of global uncertainty.
The PSX has been the driving force behind the Pakistani economy for more than two decades, and the recent surge in activity is a testament to its resilience. Despite the economic downturn caused by the pandemic, the PSX has seen a steady increase in trading volumes and market capitalization. In the first quarter of 2021, the PSX recorded a total trading volume of Rs. 9.5 trillion, a 6.5% increase from the same period in 2020. Furthermore, the total market capitalization of the exchange reached an all-time high of Rs. 13.2 trillion in the first quarter of 2021, a 10.5% increase from the same period in 2020.
The PSX has benefited from the influx of foreign investors in the country, who have been attracted by the stability of the Pakistani economy. In the first quarter of 2021, foreign investors were net buyers of Pakistani stocks, to the tune of Rs. 1.7 trillion. This influx of foreign capital has been a major factor in the growth of the PSX, and it is expected to continue in the coming months.
The success of the PSX has been a major boost for the Pakistani economy, and it has helped to create a positive sentiment in the markets. The government has also taken steps to ensure that the PSX remains attractive to foreign investors, such as increasing the limit on foreign ownership of stocks and introducing tax incentives for foreign investors.
The success of the PSX is a testament to the resilience of the Pakistani economy, and it is a sign that the country is on the right track. Despite the global uncertainty, the PSX has been able to maintain its growth and attract foreign investors, which is a major achievement. As the world moves towards a post-pandemic recovery, the PSX is well-positioned to continue its growth and provide a stable platform for investors.