Pakistan Stock Exchange (PSX) has been on a hot streak, soaring to record highs in recent weeks. The benchmark KSE-100 index has gained more than 4,000 points since the start of 2021, and is now at an all-time high of 52,818 points.
The surge in the stock market has been driven by a combination of factors, including increased investor confidence in the country’s economic outlook and a wave of foreign investment. In the first quarter of 2021, foreign investors injected $230 million into the market, more than double the amount they invested in the same period last year.
The government has also taken steps to improve the attractiveness of the stock market by introducing a number of reforms. In particular, it has reduced the minimum account size for foreign investors from $50,000 to $10,000, and has also removed the requirement for a foreign investor to open a local bank account in order to invest in the market.
The stock market rally has been a major boost for the economy, with the market capitalization of listed companies now standing at a record $117 billion. This has provided a much-needed injection of funds into the economy, as well as a source of capital for companies looking to expand their operations.
The surge in the stock market has also been beneficial for individual investors, with many seeing their portfolios grow significantly in recent weeks. However, the market is still seen as a risky investment, and investors are advised to exercise caution when investing in the market.
Overall, the recent surge in the Pakistan Stock Exchange has been a welcome boost for the economy, and a sign of the increasing confidence in the country’s economic outlook. It remains to be seen whether the rally can be sustained in the long-term, but for now, the outlook is certainly positive.