KSE-100 Index breaches 61,000 ceiling 

KARACHI, Nov 29 (SABAH): The record-breaking streak continues as the KSE-100 Index reached a new high of 61,105.59 with a 375.33, or 0.62 per cent, gain during early trading on Wednesday, just after surpassing the 60,000 mark, as the improved macroeconomic indicators, expected end to rate hikes and arrival of foreign direct investment (FDI) continue boosting business sentiments.

However, the benchmark index later in the session witnessed market correction amid profit-taking and had slipped to the red zone, hovering at 60,647.03 with an 83.23 points, or -0.14 per cent, contraction by the time this report was filed around 2:35pm.

The volatility in market meant that the KSE-100 Index has so far vacillated between a high of 61,555.83 and low of 60,328.17 against the previous closing of 60,730.26 during Wednesday’s session.

There are a number of factors contributing to the ongoing surge in stocks but the foreign currency inflow will be the major boost.

The foreign direct investment (FDI) will not only revive the economy by expanding the existing businesses but also creating ones while providing the much-needed job opportunities to the people who are hit hard by the prevailing cost-of-ling crisis sustained by the record-high inflation.

At the same time, the FDI will enhance the share prices of listed companies especially in energy and related sectors – an eagerly awaited trend already being witnessed in the market after years of undervalued status.

Meanwhile, the decline in property prices – a trend witnessed around the globe – is also making the investors rush towards the stocks due to the higher dividends.

Also, the IMF’s insistence on expanding the tax net and enhance revenue collection mean black market or informal sectors will slowly become less profitable as a result of documentation of economy.