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The Pakistan Stock Exchange (PSX) has seen a phenomenal rise of nearly 17% and the highest foreign investment in six years of $34.5 million in November 2023, indicating the strong confidence of investors in the country’s economic revival.
This was the second-highest monthly return in percentage terms in over a decade, only behind the Covid’s abnormal return in April 2020.
The surge in Pakistan’s stock market rally has been a pivotal factor in the 50 percent increase in the benchmark index since late June, making it the world’s second-best performer during this period, following Argentina.
The bullish momentum in the month was driven by the confidence of investors in the country’s economic outlook, following the $3bn Stand-by Arrangement (SBA) with the International Monetary Fund (IMF) that averted a sovereign debt default.
The expected inflows from the IMF and friendly countries, such as China and Saudi Arabia, the relatively stable currency, and the possible cut in the interest rates also boosted the market sentiment.
