PSX Tops World Markets in July
Pakistan Stock Exchange (PSX) was the world's best-performing stock market in July 2023.
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Positive developments boosted PSX by over 16%, according to Arif Habib Limited (AHL).
The government obtained a $3 billion Stand-by Arrangement (SBA) credit from the International Monetary Fund (IMF) at the start of the month, disbursing $1.2 billion. Fitch upgraded Pakistan's sovereign rating from CCC- to CCC after this crucial IMF arrangement.
After IMF backing, the State Bank of Pakistan received considerable inflows/rollovers from allied nations, increasing foreign reserves to $8.2 billion by month-end. In June 2023, Pakistan recorded its fourth straight $334 million Current Account Surplus.
Five Pakistani state-owned firms and Saudi Arabia inked a significant MoU, enabling a $10 billion refinery project in Pakistan.
These encouraging achievements and the optimistic anticipation of settling circular debt boosted market mood, sending the local bourse beyond 48,000 points for the first time since 23 August 2021. The benchmark KSE-100 index rose 6,582 points or 15.9 percent to 48,035 points, the greatest monthly return since April 20.
July 2023 average daily volumes were 384 million shares (+127 percent MoM) and average daily traded value was $41 million (+149 percent). Foreign investors bought $14.9 million in Banks ($8.6 million), Technology & Communications ($2.9 million), and Cements ($2.4 million), while selling $2.8 million and $0.9 million in Other sectors and Power.
