As anticipation mounts for the upcoming General Elections scheduled forJanuary 2024, the Pakistan Stock Exchange (PSX) appears poised for asignificant surge, as indicated in a report by Topline Securities.According to Topline Securities’ projections, the Pakistani market couldpotentially witness an impressive pre-election rally ranging from 8 to 10percent, with the potential to breach the 50,000 mark. This optimisticoutlook hinges on the assumption of a smoothly conducted election processand the approval of the IMF tranche in November.
Several crucial factors are expected to shape the short-term performance ofthe Pakistani market. These include the impending election, the trajectoryof the Pakistani Rupee (PKR), and the outcome of the International MonetaryFund’s (IMF) November review. Should the PKR maintain stability, followingrecent regulatory measures, local equities are poised to exhibit strongperformance in the lead-up to the elections.
The Election Commission of Pakistan (ECP) recently confirmed that theGeneral Elections are slated to take place during the last week of January2024. It is worth recalling that the previous Assemblies were dissolved inAugust 2023, and as per constitutional provisions, General Elections shouldbe held within 90 days of the dissolution of the National Assembly.Nevertheless, due to the necessary 2023 census and the subsequentdelimitation process, which was approved on August 5, 2023, by the Councilof Common Interests, this delay was widely anticipated. Consequently, therewas a prevailing air of uncertainty surrounding the General Elections andtheir timeline.
In response to the announcement of the election schedule on Thursday,September 21, 2023, the PSX welcomed the news with enthusiasm, leading to anotable 1.2 percent increase in its performance over the course of twotrading sessions. This positive market reaction signifies the growingconfidence and optimism surrounding the forthcoming elections and theirpotential impact on the financial landscape of Pakistan.
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In conclusion, the Pakistan Stock Exchange is poised for a pre-electionrally in the lead-up to the January 2024 General Elections. Key factorssuch as political developments, currency stability, and IMF decisions willplay a pivotal role in shaping the market’s performance. The recentannouncement of the election timeline has already spurred positive marketactivity, reflecting the hopeful sentiments of investors as they await theoutcomes of this significant political event.
