Shares at the Pakistan Stock Exchange (PSX) surged more than 900 points to hit the historic 100,000 milestone on Thursday.<\/p>\n\n\n\n
The benchmark KSE-100 surged 947.32, or 0.95 per cent, to stand at 100,216.57 points from the previous close of 99,269.25 points at 9:35am.<\/p>\n\n\n\n
The record comes two days after the PSX saw brief uncertainty<\/a> due to political tensions, recovering tremendously the next day as it witnessed the highest single-day gain<\/a> on Wednesday.<\/p>\n\n\n\n Mohammed Sohail, chief executive of Topline Securities, said, \u201cA remarkable 150pc return from 40k to 100k in just 17 months!\u201d<\/p>\n\n\n\n \u201cNew IMF (International Monetary Fund) loan coupled with fiscal and monetary discipline improving investors sentiments,\u201d he highlighted, adding that faster-than-expected fall in inflation and interest rates added cash liquidity to the stock market.<\/p>\n\n\n\n Despite the rally, Sohail noted that the market\u2019s price-to-earnings ratio still traded at 5x compared to the historical average of 7x.<\/p>\n\n\n\n \u201cFrom less than 1,000 points in the late 1990s to 100,000 today, the market is up 100 times,\u201d he pointed out, adding that this happened after \u201c25 years of ups and downs, bull runs and bear runs, optimism and pessimism\u201d.<\/p>\n\n\n\n \u201cDespite challenges, the market has generated following returns in last 25 years,\u201d he noted, adding that there\u2019s a 20pc annual return in rupee and a 13pc annual return in the greenback which stood as a \u201ctestament to resilience and potential\u201d.<\/p>\n\n\n\n Faran Rizvi, head of equity sales at JS Global, said, \u201cIn a historic milestone, the KSE-100 has today reached the 100,000 index level, in line with our year-end target.\u201d<\/p>\n\n\n\n He pointed out their target of 100,000 with 60pc return for the index \u201cwas premised on a combination of 47pc capital gains and a 13pc dividend yield\u201d.<\/p>\n\n\n\n Yousuf M. Farooq, director research at Chase Securities, observed the index had broken the \u201cpsychological barrier of 100,000 points today\u201d, adding that stock market had compounded investor capital at an annual rate of 16 to 18pc historically.<\/p>\n\n\n\n \u201cPeriods of prolonged low returns have consistently been followed by phases of significant growth, as seen in previous years,\u201d he highlighted.<\/p>\n\n\n\n Farooq recommended that investors prioritise \u201clong-term compounding rather than being overly concerned about short-term market fluctuations, as even professionals find it difficult to time these movements accurately\u201d.<\/p>\n\n\n\n \u201cAt an annual compounded return of 17pc, the PSX could potentially reach 480,000 points by 2034 and an astounding 2,300,000 points by 2044,\u201d he said.<\/p>\n\n\n\n He added, \u201cTo put this into perspective, the KSE-100 Index stood near 5,500 points 20 years ago and around 31,000 points 10 years ago.<\/p>\n\n\n\n \u201cOver the past 20 years, investor returns have been approximately 18x, while the past decade has yielded a return of around 3.22x.\u201d<\/p>\n\n\n\n He remarked that the returns were realised \u201cdespite facing historically challenging circumstances, including prolonged periods of high inflation, devastating floods, political instability, and multiple currency crises\u201d.<\/p>\n\n\n\n \u201cWe believe retail investors should adopt a long-term perspective, investing small amounts of capital monthly in a diversified portfolio aligned with their risk appetite,\u201d he advised, adding that it was critical \u201cto consult a financial advisor to ensure investments\u201d.<\/p>\n\n\n\n Awais Ashraf, director research at AKD Securities, pointed out that \u201cpolitical and macroeconomic stability have driven a significant bull run in the KSE-100 Index, delivering a remarkable 150pc return over the past 18 months\u201d.<\/p>\n\n\n\n He observed that the IMF bailout helped the government stabilise the external account, which contributed to ease in inflationary pressure from 38pc to 7.2pc.<\/p>\n\n\n\n \u201cThis improvement allowed the State Bank of Pakistan (SBP) to lower the policy rate by 700 basis points this year while also boosting foreign exchange reserves,\u201d he said.<\/p>\n\n\n\n Furthermore, he highlighted that despite gains, the market remained attractively valued with the price-to-earning ratio of 4.7x \u2014 a \u201cconsiderable discount compared to historical averages and regional benchmarks\u201d.<\/p>\n\n\n\n \u201cDeclining fixed income yields, coupled with ongoing macroeconomic stability, strengthen the case for equity investments,\u201d he commented.<\/p>","protected":false},"excerpt":{"rendered":" Shares at the Pakistan Stock Exchange (PSX) surged more than 900 points to hit the historic 100,000 milestone on Thursday. The benchmark KSE-100 surged 947.32, or 0.95 per cent, to stand at 100,216.57 points from the previous close of 99,269.25 points at 9:35am. The record comes two days after the PSX saw brief uncertainty due to political […]<\/p>","protected":false},"author":10,"featured_media":9226,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80,3,82],"tags":[],"class_list":["post-9225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia","category-business","category-paksitan"],"_links":{"self":[{"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/posts\/9225"}],"collection":[{"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/comments?post=9225"}],"version-history":[{"count":0,"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/posts\/9225\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/media\/9226"}],"wp:attachment":[{"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/media?parent=9225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/categories?post=9225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asiafreepress.com\/en\/wp-json\/wp\/v2\/tags?post=9225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}