Pakistan’s stock exchange market cap continues to climb, despite the economic challenges the country has faced over the past year. The Pakistan Stock Exchange (PSX) has seen a surge in market capitalization since the start of 2021, with the benchmark KSE-100 index rising to an all-time high of 51,853.97 points on March 22.
The surge in the stock market has been driven by a combination of factors, including an increase in foreign investment and a rise in domestic investor confidence. Foreign investors have been attracted to Pakistan’s stock market due to its relatively low valuations and attractive dividend yields. In addition, the government’s recent economic reforms have helped to improve the investment climate and attract more foreign capital.
The PSX’s market cap has also been boosted by a number of domestic investors. Retail investors have been encouraged by the government’s decision to reduce the minimum investment requirement for the stock market from Rs. 1 million to Rs. 500,000. This has made it easier for smaller investors to participate in the stock market. In addition, the government’s decision to allow non-residents to invest in the stock market has also helped to attract more foreign capital.
The surge in the stock market has been a major boost for Pakistan’s economy, as it has helped to create jobs and spur economic growth. The increased capitalization has also helped to boost the government’s coffers, as it has increased the amount of taxes it can collect from the stock market.
Overall, the surge in the Pakistan Stock Exchange’s market cap is a positive development for the country’s economy. It has helped to attract more foreign capital, create jobs, and spur economic growth. The government should continue to take steps to improve the investment climate and encourage more domestic and foreign investors to participate in the stock market.