The world experienced a halt and a subsequent and historic dip in the stock market as a result of Global Pandemic spread that went out of control. But Bloomberg recently reported that Pakistan’s benchmark index has gained 47 percent since reaching the lowest on March 25, 2020. The month of July was the best performing month in 17 years.
Pakistan’s benchmark index, KSE-100, was the second-best performer globally in the past month according to Bloomberg’s data and has gained 47%, recovering all the losses caused by the coronavirus.
The stock market depicted a vigorous performance in the first month of FY21 with the local equity bourse closing at 39,258 points, up by 4,837 points, and translating to a return of 14.05% MoM (USD-based return of 14.78% MoM) in Jul’20, according to Arif Habib Ltd’s report.
A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities, told ProPakistani, “ Low-interest rates, FATF bills passage, low infection rate & improving tax collection is keeping the bull rejoiced. However, expect correction also. Rally is never forever.”
“The improvement in the domestic COVID-19 infection and recovery rates, stability in the PKR-USD parity amid monetary support from multilateral institutions, end of coronavirus induced lockdown, aided volumes and attracted investment in the market,” the report added.
Bulls continued their dominance over the Pakistan Stock Exchange today as by the end of the day the benchmark KSE-100 index surged to around 613 points or 1.56% to close at 39,871 points during the first working day of August.
Contributions to the index in July were led by Commercial Banks, Cement E&P, and Fertilizers.