The Pakistan Stock Exchange continued to soar Monday until trade closed at 40,124 points. Profits for stock holders (rate of returns on investment) skyrocketed to about 37%, the highest monthly return since May 2013.
Experts and financial analysts have predicted smooth sailing for investors in the near future, citing positivity in the overall national sentiment. Investors have also shown interest in buy-ins.
The upward trends in the market, coupled with Moody’s upgrading credit rating of Pakistan, have boosted confidence of investors. The collective response and profits for traders and investors are making local market lucrative for prospect interests within and without the country.
This has materialized also in figures of net-buyers. More people are currently buying shares compared to those selling out.
Moody’s expects current account deficit of Pakistan to continue narrowing in the current and next fiscal year, averaging around 2.2% of the GDP. It was more than 6% in fiscal year 2018 and around 5% in fiscal year 2019.
The stock market had investors pulling out their funds since it plummeted to below 29,000 points in August, owing to the political instability causing negative sentiment and pushing stocks to the verge of crash.
Contrary to the erstwhile beliefs and speculations, the market hit on Monday its highest benchmark index in over 6 months, while the ROI were recorded to be the most since May 2013.