The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) gained 414.55 points or 0.67% on Thursday in a pre-election rally session.
According to the PSX website, the KSE-100 index closed at 62,393.73 level.
During intraday trading, troughs were visible in the afternoon, and crest patterns started to emerge in the evening before the market closed.
In recent days, the KSE-100 index has been experiencing a downturn due to various reasons.
“The KSE-100 index witnessed a decrease of 472 points / -0.8% MoM during Jan’24 to close at 61,979 points”, said Arif Habib Limited.
Market analysts hold varying opinions regarding the recent phenomenon of selling pressure. Nonetheless, market moguls are forecasting a swift recovery in the post-election period.
The monthly economic outlook report published by the Finance Division also provides concrete facts that encourage optimism about future economic performance. The outlook report showed some positive economic indicators for the first half of the fiscal year 2023-24.
The GDP growth increased to 2.13% in the first quarter, the current account deficit contracted to $831 million, and the foreign direct investment surged by 34.8%.
However, the economy also faced some challenges, such as high inflation, which stood at 28.8% in the first six months, and a widening fiscal deficit, which reached 2.3% of GDP.
The stock market also performed well, as the market capitalization of the PSX increased by Rs 334 billion to Rs 9,063 billion by the end of December 2023.
Therefore, the recent recovery in the business and economic environment potentially can positively impact the PSX performance in the post-election period.
