The Pakistan Stock Exchange (PSX) has set the record by achieving the highest value of shares traded in 13 years as it hit three-year high growth in share prices on Friday with 16-year high trade volume with experts attributing it to the confidence given to investors by the monetary policy announcement.
The trading helped it to emerge as the second best performing regional market and at a global level, it settled on the seventh position among the best performing stock markets in the single month of January.
The Monetary Policy Statement last week provided a look into the future policy, which boosted investor confidence.
On Tuesday, more than 880 million shares were traded in the stock market. A total of 600 million shares were traded in the regular market while 280 million were traded in the futures market.
Read more: KSE-100 index cross 45,000 mark for first time in 3 years
According to Arif Habib Limited, the 13-year high was achieved after the value of trade at the Pakistan Stock Exchange reached Rs 45.7 billion. This does not count a rise in 2017 when Pakistan was included in the MSCI Emerging Markets Index.
Moreover, experts are of the view that investors seem satisfied with the economic outlook of Pakistan, this is the reason that they are willingly investing in the stock market.
Whereas, trading shares in cement and technology sector remained higher than others. Investors were also reacting to news of rising cement prices.
Meanwhile, the PSX gained 200 points and the KSE-100 Index closed at 46,287. Pakistan Stock Exchange emerged as the second best performing market in the region and 7th best performing market in the world.
As per the statement of an analyst at Arif Habib Limited, “Historically, we have seen healthy returns during January and this month was no different.”
In fact, KSE-100 returns (6.0 percent) have outperformed the last 10-year average returns (4.1 percent) of January. The USD-based return for the month settled at 5.8 percent. The returns of the KSE-100 Index have settled at 34.8 percent in the seven months of FY21. (USD-based: 41.4 percent).
