Pakistan Stock Exchange (PSX) has been breaking records in recent weeks as investors look for profits. The benchmark KSE-100 index has surged to an all-time high of 48,876 points, a gain of almost 8% since the beginning of 2021.
The surge in the stock market is being driven by a combination of factors, including strong macroeconomic fundamentals, improved security, and the government’s efforts to attract foreign investment. The economy has been growing at a healthy rate of 5.2% in 2020 and is expected to reach 6% in 2021. This has helped to boost investor confidence in the country’s economy and stock market.
In addition, the government’s reforms to make it easier for foreign investors to enter the market have also been a major driver of the stock market’s surge. This includes the introduction of a new online trading platform, which has made it easier for foreign investors to access the market. The government has also taken steps to improve the business climate and make it easier for companies to list on the exchange.
The government’s efforts to attract foreign investment have been further boosted by the introduction of the Pakistan Investment Bond (PIB). The PIB is a government-backed bond that allows foreign investors to invest in the Pakistani stock market. This has been a major draw for foreign investors, who have been pouring money into the market.
The surge in the stock market has been a major boon for investors, who have seen their investments grow in value. However, it is important to note that the stock market is volatile and can go up and down quickly. Investors should be aware of the risks associated with investing in the stock market and should not invest more than they can afford to lose.
Overall, the surge in the Pakistan Stock Exchange has been a major success story for the country and has been driven by a combination of factors. The government’s efforts to attract foreign investment and improve the business climate have been a major driver of the stock market’s surge. Investors should be aware of the risks associated with investing in the stock market and should not invest more than they can afford to lose.