The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index crossed the 48,000 level on Monday, a 24-month high, as analysts expect positive sentiment to continue in the coming days.
Bulls led the market after Pakistan’s agreement with the International Monetary Fund (IMF), and later news about the country’s minerals sector further bolstered gains.
During intraday trade, the benchmark index rose 1,010.72 points or 2.15 percent to 48,062.56 points, up from the previous close of 47,076.9 points – a 21-month high, according to the data.
The market has gained more than 6,600 points (+15.9%) since Pakistan’s staff-level agreement for a $3 billion standby agreement with the IMF.
Under the Special Investment Facilitation Council (SIFC), the government is also organizing a Pakistan Mineral Summit, starting August 1, to seek foreign investment in Rekodak and other mining and mineral projects.
Speaking to Geo.TV, Samiullah Tariq, head of research at the Pakistan-Kuwait Investment Company, called the expected investment in minerals a “big” contributor to the market’s growth.
“The big factor is optimism about investment in minerals; positive expectations of investment in other ventures/sectors as a boost to investment in mining,” he said.
Pakistan’s four leading state-owned companies have also signed a memorandum of understanding to cooperate on a $10 billion greenfield refinery project to be jointly developed with Saudi Aramco at the Gwadar port in Balochistan.
Raza Jafri, head of equities at Intermarket Securities, told Geo.tv that today’s run-up is broad-based, led by strong results from banks and valuation reratings, and energy stocks on hopes of energy reform and revolving debt resolution. through
He mentioned that there has been a total transformation on the back of Pakistan after receiving IMF’s SBA programme, which has opened up new financing from friendly countries and given confidence to investors including foreign funds.
“It remains a bearish market, with the potential to make new all-time highs provided risks are managed well,” the analyst said, adding that today’s rise would add 15 percent to July gains. takes more than , which easily makes it a longer month. more than three years.
Khurram Shahzad, CEO of Alpha Beta Core, said clarity on the political front is boosting investor confidence – as the government is likely to dissolve assemblies and hand over interim rulers before its term ends.
“Political clarity, timely expected political transition, being on track with the IMF, part of the gas revolving credit being repaid, and some world leaders visiting Pakistan showing interest in investing, stocks There are some reasons to continue the momentum.”
