The Pakistan Stock Exchange (PSX) opened the new year on a high note, trading in the green zone after a 1,500-point increase.
On Monday, the benchmark KSE-100 index closed at 64,023.98 points, up 1,572.94 points or 2.52% from the previous close of 62,451.04 points.
Raza Jafri, Head of Equities at Intermarket Securities, attributed the spike in energy equities to the anticipation of dividend distributions as the election season approaches and the government takes real steps to reduce circular debt.
"There are also expectations of greater institutional flows into equities, with monetary easing expected to commence within the next few months," he added.
Stocks climbed 0.64% in 2023's last trading day as investors hailed the increase in foreign exchange reserves and the influx of loans from multilateral lenders.
The central bank announced that its foreign exchange reserves climbed by $853 million to $7.8 billion in the week ended December 22, owing to financial support from bilateral and multilateral sources.
Meanwhile, the PSX ended 2023 with the strongest year since 2010, as the KSE-100 index gained 55%, ranking third among global markets in local currency terms.
In dollar terms, the index increased 24%, outperforming the MSCI Emerging Markets Index, which rose 18%.
Analysts are bullish about the market's prospects in 2024, expecting the International Monetary Fund (IMF) program to continue, the currency to stay stable, interest rates to fall, earnings to expand, and valuations to improve.