Pakistan Stock Exchange Emerges as the Top Performing Market Globally This Week

• Pakistan Stock Exchange (PSX) named world’s best performing market for the second week in a row.
• PSX experienced significant growth, crossing 44,000-point mark with a gain of almost 2,800 points.
• Investor confidence driven by agreement with IMF and positive sector performances.

Arif Habib Limited’s report reveals that the Pakistan Stock Exchange (PSX) had a remarkable week following the Eid holiday, making it the “world’s best performing market” for two consecutive weeks. The PSX exhibited substantial growth, surpassing 44,000 points and gaining nearly 2,800 points. Investor participation in the market was driven by the recent agreement reached with the International Monetary Fund (IMF).

The week commenced on a positive note, with a significant daily gain on Monday as investors responded favorably to the long-awaited staff-level agreement with the IMF. However, profit-taking by institutions resulted in a temporary bearish trend on Tuesday, despite a significant recovery subsequent to the IMF deal.

Wednesday saw a relatively flat market closing due to concerns over liquidity risks and the depreciation of the Pakistani rupee. Nevertheless, Thursday marked a return to positive territory as investors anticipated the IMF’s approval of a $3 billion loan during its upcoming executive board meeting, leading to increased buying interest.

The final trading session remained positive as investors drew support from Pakistan’s growing foreign currency reserves, even in the absence of significant positive factors. Consequently, the benchmark KSE-100 index surged by 2,755 points, closing at 44,207 for the week following Eid.

Muhammad Waqas Ghani, an analyst at JS Global, highlighted the investor enthusiasm sparked by the government’s agreement with the IMF, which fostered market optimism. Noteworthy performances were observed in various sectors, including refineries, technology, and engineering.

In terms of trade figures, Pakistan witnessed a substantial reduction in the trade deficit for FY23, narrowing by 43% year-on-year to $27.5 billion. Moreover, the market responded positively to the government’s disbursement of Rs142 billion to settle dues with Independent Power Producers (IPPs).

Foreign investors displayed increased buying activity during the week, with a total investment of $4.7 million. However, local banks/DFIs and companies reported selling activities. The average trading volumes and value traded also experienced significant increases compared to the previous week.

Overall, the Pakistan Stock Exchange demonstrated a robust performance, maintaining its position as the world’s top-performing market with a significant weekly return.

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