Historic Rally: PSX Closes Week Above 170,000

This week, the Pakistan Stock Exchange (PSX) achieved a first by surpassing the 170,000-point threshold.

Important events, such as the completion of the IMF installment, the start of circular debt repayments, and a $1.25 billion U.S. investment in Reko Diq, spurred positive investor optimism.

Over the course of five trading sessions, the benchmark KSE-100 Index of the PSX increased 1.7%, gaining 2,780 points to conclude at 169,864 points. An important turning point in the history of the market was reached when the index reached a weekly high of 170,697 points and a low of 167,386 points.

This week, 5.27 billion shares worth Rs 248 billion were traded. The market capitalization reached a new weekly high of Rs 19,321 billion after rising by Rs 282 billion.

Principal causes of the surge

• IMF Installment Completion: The funds’ release improved investor confidence and the market’s prospects.
• Circular Debt Repayments: Major energy and utility firms’ financial strains were lessened when payments under the circular debt scheme were started.
• Reko Diq Investment: Strong interest from overseas investors was sparked by the approval of a $1.25 billion U.S. investment in the Reko Diq mining project, which further improved market mood.

According to analysts, the PSX could maintain its positive momentum if macroeconomic stability, foreign investments, and government financial reforms persist.