PSX soars to historic 100,000 milestone

With bullish momentum, shares surged more than 1,000 points, crossing the 100,000 barrier for the first time in Pakistan's history, following a bearish spell just days earlier.

The benchmark PSX-100 index climbed by 1,077.25 points at 9:41 am, registering a 1.09% increase to reach 100,239.66, up from the previous close of 99,269.25, finally surpassing the historic 100,000-point benchmark.

Topline Securities termed this a significant milestone, stating, “A remarkable 150% return from 40k to 100k in just 17 months.”

“New IMF (International Monetary Fund) loan coupled with fiscal and monetary discipline improving investors sentiments,” Dawn quoted Mohammad Sohail, chief executive of Topline security.

However, experts noted that the market's price-to-earnings (P/E) ratio currently stands at 5x, which is lower than the historical average of 7x.

The Pakistan Stock Exchange (PSX), which stood at 1,000 points in the late 1990s, has now reached the 100,000-point milestone, reflecting a 100-fold increase over 25 years. This historic growth showcases renewed investor confidence despite prevailing challenges.

“Despite challenges, the market has delivered significant returns over the last 25 years,” Sohail added, highlighting a 20% annual return in rupee terms and a 13% annual return in US dollar terms.

However, last week, the PSX suffered a loss of 3,500 points amid political instability, where the Pakistan Army was deployed to manage escalating protests.