On Friday, Pakistan’s leading stock index reached its highest point in six years, with investors optimistic that the strengthening currency would help ease inflationary pressures.
The KSE-100 Index surged by 0.9% to hit 50,673.04, representing a monthly gain of approximately 10%. It now ranks as the second-best performing index out of over 90 global equity indexes monitored by Bloomberg.
The index’s price-to-earnings ratio for the coming year remains at 3.2, in contrast to the MSCI Frontier Markets index, which stands at 8.8.
Faisal Bilwani, who serves as the Head of International Sales at Alfalah CLSA Securities Pvt., noted, “The recent recovery of the Pakistani rupee, signals in the secondary debt market indicating a potential peak in interest rates, and inflation data, all contribute to a positive environment for new investments in equities at their current appealing price levels.”
