Pakistan Stock Market Grows 74 pc in Past Year (Image Source: iStockphoto)
Pakistan‘s stock market surged to a record high on Monday, with the benchmark index hitting 71,474 points, marking a 0.8 per cent increase. The index soared past the crucial 71,000 milestone earlier in the day, as reported by the Pakistan Stock Exchange website.
Remarkable Growth Trajectory
Over the past year, Pakistan’s stock market has witnessed a remarkable surge, recording an impressive 74 per cent growth. Since the beginning of the current year, the market has already gained 10.43 per cent, indicating sustained momentum in the trading arena.
IMF Loan Agreement in the Pipeline
Pakistan is currently in the process of negotiating a new loan agreement framework with the International Monetary Fund (IMF), with the aim of securing it by May. This development underscores the country’s efforts to bolster its financial stability and economic resilience.
Factors Driving Share Prices
According to The Times of India report, Sohail Mohammed, CEO of Topline Securities, a brokerage firm based in Karachi, attributed the rising share prices to robust dividends in the March quarter. Despite the market rally, Mohammed highlighted that the market is trading at a forward-looking price-earning ratio of 4, suggesting potential for further growth.
Comparative Analysis with Indian Markets
In contrast, Indian equity benchmark indices, including the BSE Sensex and Nifty50, have also been on an upward trajectory over the past year. Recently, the 30-share benchmark index BSE Sensex breached the historic 75,000 mark for the first time, reflecting the robust performance of the Indian stock market.
Positive Long-Term Outlook
