Improving economic indicators are the reason, experts say
Pakistan Stock Exchange’s benchmark KSE-100 index crossed on Wednesday the 46000-mark after nearly three years. Experts say the reason for this increase is improving economic indicators.
“Remittances are above $2 billion for seven consecutive months and current account is in surplus for five consecutive months,” JS Global Research analyst Ahmed Lakhani noted. “The economic indicators have been improving and the rise in the index was already expected.”
Large-scale manufacturing increased 14.5% in November and expectations are that December and January numbers will be robust too, he explained.
“Market expectations are that the index will go up to something around 52,000 to 55,000 points by the end of the year,” Lakhani said.
There’s comparative political stability at the moment, which is strengthening the market sentiment, according to the analyst.
Pak-Kuwait Investment AVP Adnan Sami said that improving economic indicators have a key role to play in the rise of KSE-100.
People tend to make investments in the beginning of the year, according to Sami. After a turbulent last year, investors are now returning.
“The news to resolve circular debt issue of the energy sector, now resumption of the IMF programme and strengthening of rupee against dollar have also improved market sentiments,” he said.
Energy, banking, steel, cement and auto sectors were all performing well, Sami added.