KSE-100 index has touched new heights as it has crossed 50,000 points for the first time ever. Ever since MSCI publicized its verdict to reclassify Pakistan as an emerging market, the index has been flourishing remarkably. So much so that KSE-100 index has grown by 32%.
Today (Tuesday) morning, the index augmented 164 points during intra-day trading. As a result, KSE-100 index – a yardstick for market performance – crossed the exclusive 50,000 points barrier.
No. 1 in Asia, No. 5 in The World in 2016
Pakistan managed to grab the top position in Asia in 2016 as it beat the neighboring countries including China and India comprehensively. In addition, KSE-100 index was positioned at No. 5 in the overall global ranking last year. Pakistan Stock Exchange witnessed a massive upsurge of more than 45% during the last year.
As far as 2017 is concerned, the index has already gone up 4.4% in less than a month. The primary reason of this development is foreign trading. Not too long ago, a Chinese group acquired 40% of Pakistan Stock Exchange’s stakes. Top stakeholders and investors believe that the acquisition will tempt plenty of investment and technological advancement in the stock market of Pakistan.
Factors involved in the rise of KSE-100 Index
Experts believe that the project of China-Pakistan Economic Corridor (CPEC) has played a crucial role in the upsurge of the market. In addition, improved security condition of the country, significant decline in inflation and interest rates and MSCI’s reclassification has also played its part for positive returns.
Apart from the aforementioned factors, another key element that boosted Pakistan’s stock market has been the foreign endorsements for Pakistan’s market reforms. The country got a monetary assistance from World Bank worth $1 billion.
Pakistan Stock exchange shares are currently trading at an all-time high which is helped by a flourishing economy. The bourse’s market capitalization from 558 listed companies is whopping $77 billion.
Do you think KSE-100 index will continue to shatter records in the upcoming days or months?
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