The KSE-100 Index closed 2020 at 43,755.33 after a turbulent year during which it had plunged to 27,228.80 on March 25. It started with the index at 40,735.80 as the year’s first session began on January 1, 2020 as it surged to the level of 43,218.67 on January 13. But then came a southward movement as things got an uglier turn in March when the market experienced reached its lowest point. However, it slow recovery followed which gained momentum in July. And despite all the fluctuations amid economic and political uncertainties, the Pakistan Stock Exchange was able to end the year at the current level of 43,755.33.
As per Yousuf M. Farooq, director of research at Chase Securities, “the media reports of Saudi funding for Reko Diq, the probability of Pakistan getting its next IMF programs and estimates suggesting a significant drop in interest and inflation rates ahead” are the reasons behind the current surge in value.
Pakistan’s economy appears to be heading toward recovery, and the nation maintains a positive and stable current account balance. Persistently poor economic conditions have produced significantly undervalued assets; the latest upsurge may simply be a return to the mean, the speaker added.
In summation, he said that “strong corporate earnings, good payout announcements, and smooth IMF negotiations for a new program” were the main causes of the increase.
Also Read: Pak stocks continue to rise; KSE-100 index added 806.65 points
