Pakistan Stock Market Surges as Index Crosses 81,000 Mark Due to Positive Economic Indicators

A.I generated

Positive economic signals and a significant policy rate cut by the Federal Reserve have boosted investor confidence in the Pakistan Stock Exchange (PSX). On Thursday, the KSE-100 index recorded a rise of nearly 1,500 points, pushing it beyond the 81,000 threshold.

According to the PSX website, the KSE-100 index gained 1,500 points, or 1.82%, during the trading session, reaching 81,962 points.

Owais Ashraf, Director of Research at AKD Securities, noted that investor optimism is fueled by the imminent approval of a $7 billion loan from the International Monetary Fund (IMF) and the central bank’s monetary policy easing. This has led to a strong upward trend in the Pakistan Stock Exchange.

It’s worth noting that on Wednesday, the U.S. Federal Reserve reduced interest rates by half a percentage point, indicating the start of a more relaxed monetary policy. This cut, aimed at reducing borrowing costs, is considered exceptional.

Additionally, the Pakistan Stock Exchange showed positive movement on the previous day as well, with the KSE-100 index closing at 80,461 points, following a 970-point increase.

Earlier, on September 13, after a 200 basis points cut by the central bank and the IMF’s approval of the $7 billion loan, the KSE-100 index climbed 894 points, or 1.13%, to reach 79,912 points during the morning session. 

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