Tracking KSE-100 making history day-by-day and what lies ahead

KSE-100 has offered a phenomenal 60% return so far this calendar year. It began 2024 at 62,451 points.Experts say Pakistan’s economic rebound has also helped stocks recoverA smooth transition from one IMF bailout to another also revived investor confidence as the previous programme faced a lot of uncertaintyWhile not really a positive, an IMF programme gives investors confidence that Pakistan will have an economic roadmap to followCorporate earnings, especially the banking sector’s profits, are a major factor in driving up prices at the PSXExchange rate stability and a much more tempered pace of inflation have also aided the KSE-100’s riseNow, experts believe further upside will come from liquidity that would be diverted away from fixed-income asset classes to the PSX as falling rates will make them less attractiveSome brokerage houses see the index hitting 125k-135k levels in 2025

Business Recorder offers its readers key points to break down the stocks' record rally and what lies ahead KSE-100 has offered a phenomenal 60% return so far this calendar year. It began 2024 at 62,451 points Experts say Pakistan’s economic rebound has helped stocks recover A smooth transition from one IMF bailout to another also revived investor confidence as the previous programme faced a lot of uncertainty. The previous IMF bailout – the $3-billion Stand-By Arrangement – was finalised in June 2023 .

There has been no looking back for the KSE-100 since then While not really a positive, an IMF programme gives investors confidence that Pakistan will have an economic roadmap to follow Corporate earnings, especially the banking sector’s profits, are also a major factor in driving up stock prices at the PSX Exchange rate stability and a much more tempered pace of inflation have also aided the KSE-100’s rise Now, experts believe further upside will come from liquidity that would be diverted away from fixed-income asset classes to the PSX as falling interest rates will make them less attractive Some brokerage houses see the index hitting 125k-135k levels in 2025 The central bank is due to hold its next monetary policy committee meeting on December 16 . The current key policy rate stands at 15% . Some experts see another cut of around 200bps in the upcoming meeting.

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