Pakistan’s stock market has surpassed other Asian markets in 2024, making the KSE-100 index the best-performing index in Asia. This remarkable achievement is largely due to the low valuations of Pakistani stocks compared to other regional markets.
Financial experts anticipate further growth, especially after the recent budget emphasized securing an International Monetary Fund (IMF) loan, which has boosted investor confidence.
The stability of the Pakistani rupee and easing inflation rates have created favorable conditions for potential interest rate cuts by the central bank, further enhancing market optimism. These economic factors have contributed significantly to the KSE-100 index’s impressive 27% increase in dollar terms this year. Analysts predict that this upward trend will continue, with expectations of an additional 10% rise by the end of the year.
Despite the introduction of new taxes on key industries in the latest budget, investors remain hopeful about the market’s prospects. This positive sentiment is driven by strong local liquidity, referring to the availability of cash and easily tradable assets in the market.
Moreover, foreign investors are showing increased interest in Pakistani stocks, further boosting market confidence. The combination of strong local and foreign investment underlines the market’s resilience and growth potential.
