The KSE-100 Index surged to a fresh high of 61,105.59 during early Wednesday trading, marking a 0.62% gain of 375.33 points, after recently surpassing the 60,000 milestone.
This upward trend stems from improved macroeconomic indicators, the expected halt to rate hikes, and the inflow of foreign direct investment (FDI), all of which are fostering a positive business sentiment.
The boost in foreign currency inflow is a significant driver behind this surge. FDI is anticipated to not only stimulate the economy by expanding existing businesses but also by fostering the creation of new ventures, thereby addressing the pressing issue of unemployment caused by the ongoing cost-of-living crisis exacerbated by record-high inflation.
Furthermore, FDI is poised to elevate share prices, particularly in energy and related sectors, which have long awaited such a positive trend after years of being undervalued in the market.
Simultaneously, the declining trend in property prices, observed globally, is prompting investors to turn towards stocks due to the promise of higher dividends.
Additionally, the IMF's push to broaden the tax base and improve revenue collection signifies a shift away from the profitability of black market or informal sectors, as the economy undergoes a process of documentation.
