Pakistani stocks ended Thursday close to their all-time high as optimism was raised by strong inflows of foreign capital and strengthening macroeconomic data, according to Bloomberg.
The benchmark KSE-100 index of the Pakistan Stock Exchange reached a new high earlier in the day and gained 1.1% to settle just short of the previous record of 81,865.10.
The measure has increased by more than 30% this year, according to data collated by Bloomberg, helped by foreign investors’ net purchases of $87 million in local shares, the greatest amount since 2014.
Because of a stronger economic outlook and a significant initial loan agreement with the International Monetary Fund in July, Pakistan’s stock market has performed among the best in the world this year.
The country’s current account balance has improved recently, and the central bank has cut interest rates in response to a slowdown in inflation.
Nevertheless, moving forward carries some risk. In July, FTSE Russell downgraded Pakistan from secondary emerging market to frontier market status. The choice will take effect on September 23.
