Daily Times

Pakistan’s stock market has been upward for the last several weeks. The surge reflects country’s economic recovery as the stock market often shows the overall health of the economy. When the market is doing well, it indicates that investors and businesses are feeling optimistic. The stock market remained undeterred despite a series of negative events like political instability, bomb blasts and accidents; such incidents impact the market. In other way, stock exchange is closely linked to the country’s internal conditions.

The stock market showed resilience despite the tragic incident in Karachi, where an explosion near Karachi International Airport killed three people, including two Chinese engineers, and injured 17 others. On Wednesday, the 100 index touched an all-time high of 85,440 points, surpassing the previous day’s close of 84,910 points. This is a record-breaking achievement in Pakistan’s history and suggests that the market is strong enough to withstand political and security challenges.

Many factors can be sited for the healthy stock. One reason behind this bullish trend is the expectation of further cuts in interest rates. Lower interest rates often encourage more investment in the stock market because other savings options, such as savings schemes and T-bills, offer lower returns. Investors are drawn to the higher returns they can earn from shares, especially in sectors benefiting from structural reforms.

Experts also point out that financial institutions have shown increased interest in the oil sector, which has contributed to the market’s rise. The heavy buying of shares in this sector sparked a wave of bullish activity. As a result, the share prices of nearly 49% of companies increased, and the market saw a significant rise in investment value, with an additional 197 billion rupees added.

Another factor supporting the stock market’s performance is Pakistan’s efforts to meet the conditions set by the International Monetary Fund (IMF). By bringing discipline to the economy and adhering to IMF guidelines, Pakistan is improving its economic standing. The release of financial aid installments by the IMF is also expected to have a positive impact on the stock market. While challenges remain, the market’s ability to rise despite political instability and security concerns is a hopeful sign that investors have confidence in the country’s long-term prospects. *