Yesterday, Pakistan Stock Exchange (PSX) surpassed the 40,000 barrier for the first time since February this year before the slump caused by the coronavirus pandemic. The total volume of shares crossed 800 million mark only for the fourth time this decade. The total volume of shares traded was 826.043 million.
The benchmark KSE 100 index gained 283.34 points and ended at 40,166.12 points. The indices gained 535.85 points to reach the highest level of 40,422.83 points. The bourse declined in later day trading but quickly rebounded to close the day above the 40,000 points level.
In the past year, Pakistan Stock Exchange (PSX) increased by 27.91 percent. And in the last three months, PSX increased 17.33 percent. The index has been rising after reaching its lowest level in March when the World Health Organisation declared COVID-19 a pandemic and soon after stock markets across the world reacted to it.
The ongoing pandemic has created uncontrollable chaos and hysteria. Governments around the world were unable to handle a crisis of such magnitude and stumbled to gain control.
However, Pakistan Stock Market has now entered the bull market from the bare market. There are several reasons behind the stock market’s upward trajectory. Change in monetary policy is one of the reasons behind it. Large scale manufactures and other traders have got many benefits from the reduced monetary policy.
Pakistan’s trade policy has also played a vital role in this regard. The government of Pakistan wisely decided to reduce unnecessary import and developed facilities for exporters to export, which made the success to reduce the trade deficits of Pakistan.
In the upcoming days, Pakistan industries will flourish because of trade policies and international relationships of Pakistan with China, Iran, Nepal, Afghanistan, and many other European countries. Once the industries start developing, the sales and the revenues of the industries will increase and it will impact on Pakistan’s economy and Pakistan Stock Exchange.
If we achieve our goals we will be able to accomplish a positive growth by the end of the next year’s closing. However, the sword of repaying the loans on our heads will always be there if we don’t work as one nation. We have to support the positive policies of the government and on the other hand, the government should consider the positive criticism of opposition to rectify and improve our economic policies.