The Pakistan Stock Exchange (PSX) has been recognized as the best-performing stock market in the world for 2024, thanks to improved economic conditions, according to Bloomberg.
The surge in foreign investment and positive developments in the economy have boosted investor confidence, leading to a significant rise in the PSX’s KSE-100 Index. The index recently closed at a record high of 81,459 points, with a 1.1% increase, reaching an intraday peak of 81,865 points.
This growth marks the highest level of foreign investment in over a decade, pushing the market to a 30% increase this year. Foreign investors purchased $87 million worth of Pakistani shares in 2024, the highest since 2014.
Read More: Widespread outages hit WhatsApp, Instagram, internet services in Pakistan
Bloomberg reported that this impressive performance is due to stronger economic fundamentals and an increase in foreign participation. Key factors include improvements in the current account balance and the central bank’s decision to lower interest rates, which further encouraged investment.
In July, the FTSE Russell reclassified Pakistan from a secondary emerging market to a frontier market, effective September 23. This shift is expected to draw more international investors, especially in sectors like energy and fertilizers, which have high growth potential. Despite some challenges, the outlook for the PSX remains positive.
