Business Desk 
Nov 29, 2024
The KSE-100 in the Pakistan Stock Exchange (PSX) has been on an immensely remarkable bullish trend, closing at the past 100,000 mark, a historical high, on Thursday after undergoing a historic single-day drop of 3,506 points.
The stock market rising by 813.52 points to close at 100,082.77 is an indication of a fruitful impact on the economy, but how does it affect the lives of average citizens?
How bullish stock market affects average person?
The sky-rocketing upward graph of PSX has attracted eyeballs, drawing people on social media to enquire about its consequences for them.
Citing Karim Punjani, an ex-equities and treasury fund manager, The News noted that besides beckoning investors to bag gains, the market’s rise paints a picture of a promising economy, adding that for a common man, it means that the economy is on the right track.
“People will have more disposable income, and their purchasing power will likely increase going forward. This is what the market signals at.”
How bullish stock market affects retail investors?
For retail investors, people who invest through mutual funds, a bullish trend will offer higher returns on investment.
“Rising markets attract many new investors to the market. This bullish run led by economic stability will definitely bring more investors to the market, further diversifying the investors base of the exchange,” said Shankar Talreja, Topline Securities director research Shankar Talreja.
A financial in the Middle East said that such rapid gains lure retail investors. “Developing countries usually have a low rate of retail investors, and Pakistan is perhaps lower in ranking than its neighbouring countries when it comes to participation of individuals in the market,” he said.
Topline Securities CEO Mohammed Sohail said the PSX has delivered a remarkable 150% return from 40,000 to 100,000 in just 17 months.
Another factor which is said to have driven investor confidence was a new IMF loan, coupled with fiscal and monetary discipline.
