Pakistan Stock Exchange emerges as 5th best-performing market in 2024

The Pakistan Stock Exchange (PSX) has emerged as the 5th best-performing market globally in terms of dollar-based returns for 2024, according to global investors.

The benchmark KSE-100 index has surged by 32.64% since January 1, attracting significant foreign portfolio investments.

So far, foreign investors have net purchased $87 million in local shares, marking the highest inflow since 2014.

This stellar performance is attributed to an improving economic outlook and a crucial initial loan agreement with the International Monetary Fund (IMF) in July. Recent months have seen improvements in Pakistan's current account balance, and the central bank has reduced interest rates as inflation eases.

Inflation has dropped from 28.3% in January to 9.6% in August, with the average inflation for the first nine months of 2024 at 16.8%, compared to 31.7% in the same period last year. Interest rates have also decreased from 22% in January to 17.5%, while the currency has remained relatively stable.

The IMF loan and improving economic indicators are drawing investors to Pakistan, which remains an attractive market for foreign investments, especially following the Federal Reserve's interest rate cut.

Globally, Argentina's S&P MERVAL TR ARS leads with a 64.04% surge, followed by Zambia's Lusaka Stock Exchange Al (43.13%), Kenya’s Nairobi All Share (41.75%), and Canada’s General Market Index (36.37%). Other top performers include Slovenia's Blue-Chip Index (29.87%), Serbia’s BELEX15 Index (28.52%), FTSE Bursa Malaysia KLCI (24.91%), Denmark’s OMX Copenhagen 20 Index (21.09%), and Morocco’s MASI Free Float Index (19.41%).