The Pakistan Stock Exchange (PSX) surpassed the 81,000-point milestone as both local and foreign investors showed increased interest and purchased shares actively. The KSE-100 index, which serves as the benchmark, rose by 483.98 points or 0.6% to reach 81,050.18 points during intraday trading.
This development indicates a positive movement in the stock market, where the index’s rise reflects growing investor confidence and optimism. When the index climbs, it generally signifies that stock prices for major companies listed on the PSX are increasing, which can attract further investment and bolster overall market sentiment.
Analyst Ahsan Mehanti from Arif Habib Corp, speaking to Geo.tv, mentioned that stock prices reached an all-time high because investors are considering the privatization of state-owned enterprises (SOEs). This follows Prime Minister Shehbaz Sharif’s assurance that the bidding process for Pakistan International Airlines (PIA) will start in August. Mehanti also credited the strengthening of the Pakistani rupee against the US dollar and investor optimism about a new deal with the International Monetary Fund (IMF) for the market’s gains.
He highlighted that the State Bank of Pakistan’s (SBP) low interest rates played a crucial role in boosting activity at the PSX.
Khurram Schehzad, CEO of Alpha Beta Core and an economic analyst, added that upcoming IMF negotiations for a new, larger program have bolstered investor confidence in economic reforms and stability. He noted that the market remains attractively valued based on various financial metrics, which continues to attract investor interest.
The previous day, stocks had risen by 353.41 points or 0.44%, closing at 80,566.21 points.
This explanation underscores the factors driving the recent surge in Pakistan’s stock market, reflecting positive investor sentiment influenced by economic policy announcements and external financial support expectations.
