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Islamabad, Oct 24; They included a major bump in the Pakistan Stock Exchange when it broke past the 87,000-point mark to reach its highest point yet.
This outstanding performance is a clear indication of conservative as well as positive growth potential of Pakistan economy which has gone through many ordeals in last few years.
The movement of the PSX index entails higher level of investors’ confidence in the future view of the economy on account of key structural reforms, political stability and higher,[37] and enhanced boost from overseas investors.
Key Factors Behind the PSX Surge
There are many reasons can be behind the record performance of Pakistan Stock Exchange (PSX). Among those, the most significant is the ongoing process of economic reforms aimed at the stabilization of the fiscal situation.
It is noteworthy that the government has developed measures to remove fiscal deficit, strengthen the national currency, and enhance the business climate within the country.
Such reforms have been warmly welcomed by local as well as foreign investors, thus boosting awareness of the markets and price of stocks. This contributes to our realization that another major driver of the surge in PSX is the superior performance in key sectors such as banking and energy as well as technology.
These and other industries grow and as they grow, they encourage both local and international investors. Furthermore, the IMF expects positive economic sentiments in Pakistani and the growth of the economy will surely impress the investors.
Foreign Investments and Market Liquidity
something through which FDI has given quite an enhanced boost to the PSX. Owing to relaxation of policies and government encouragements of foreign investors, Pakistan has witnessed the flow of foreign direct investment in social sectors such as infrastructure, telecommunications and energy.
Better market liquidity has given a right foundation for stock market performance and takes the PSX above 87,000.
Moreover, the growth and emergence of stock markets are also conducive due to the recent policy reform by SECP and therefore the stock market is more opened to demanding that enhancement from institutional and also retail investors.
Investor Confidence on the Rise
