Saturday, January 28, 2017
Pakistan stock market makes new high of 50000
After failed attempts in the previous two sessions to settle above 50,000 points, the KSE-100 index finally managed to accomplish the feat for the first time on Thursday.
The buying frenzy intensified in the last hour, which saw the index surge 435.59 points, or 0.88 per cent, to close at 50,192.36. With the addition of Rs60 billion on Thursday, the market capitalization of the Pakistan Stock Exchange (PSX) also reached Rs10 trillion.
Arif Habib, former chairman of the stock exchange, cited the low interest rate regime, expectation of growth in corporate profits and improvement in security situation in the country as the reasons for the high-flying stocks. “Things could get better as the perception over the future of Pakistan economy improves and energy shortage is addressed,” he said.
I bought the Pakistan ETF last March and so far we have seen a 40% return. As the power problems get fixed productivity in the economy will increase and help with economic growth. Not that economic growth correlates with positive stock market returns in the short term. However long term it will have a great effect.