The Pakistan Stock Exchange (PSX) has been recognized as the world’s best-performing stock market in 2024, driven by improving macroeconomic conditions, according to Bloomberg.
A surge in foreign investment, coupled with favorable economic trends, has significantly boosted investor confidence. The KSE-100 Index of the PSX reached an all-time high, closing at 81,459 points following a 1.1% gain and peaking at 81,865 points during intraday trading.
This remarkable performance marks the highest level of foreign investment in the market in over a decade. The PSX has experienced a 30% growth in 2024, making it the top-performing stock market globally. Foreign investors purchased $87 million worth of Pakistani shares this year, the largest foreign inflow since 2014.
The influx of foreign capital, alongside positive domestic economic developments, has been pivotal in propelling the PSX’s growth. Bloomberg attributes the strong market performance to improved economic fundamentals and increased foreign participation.
Other contributing factors include an improved current account balance and the central bank’s recent interest rate cuts, which were made possible by controlled inflation. These rate cuts have further fueled investment in the market.
Despite ongoing challenges such as external debt and fiscal deficits, the outlook for the PSX remains optimistic. With rising foreign investment and stronger economic indicators, the market is expected to continue its upward trajectory. The recent rally, with the KSE-100 Index climbing to 82,157.31 points, underscores strong investor confidence and a positive economic outlook for Pakistan.
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