On Tuesday, the Pakistan Stock Exchange (PSX) achieved a significant milestone, breaching the 81,000-point mark as local and foreign investors aggressively bought shares. The benchmark KSE-100 index gained 483.98 points, or 0.6%, reaching 81,050.18 points during intraday trading.
Key Factors Behind the Surge
- Privatization of SOEs: Analyst Ahsan Mehanti from Arif Habib Corp explained to Geo.tv that the surge was driven by investor optimism regarding the privatization of state-owned enterprises (SOEs). Prime Minister Shehbaz Sharif’s assurance of initiating the bidding process for Pakistan International Airlines (PIA) in August played a significant role.
- Rupee Recovery: The recovery of the rupee against the dollar also contributed to the positive sentiment in the market.
- IMF Deal Hopes: Investors are hopeful about a new deal with the International Monetary Fund (IMF), which is expected to provide economic stability and reform.
- State Bank of Pakistan Policy Rates: Easy policy rates set by the State Bank of Pakistan acted as a catalyst for the bullish activity at PSX, according to Mehanti.
Economic Analyst Insights
Khurram Schehzad, CEO of Alpha Beta Core and an economic analyst, pointed out that the upcoming IMF talks for a new, larger, and longer program have bolstered investor confidence in economic reforms and stability. He noted that the market remains inexpensive on multiples, prompting investors to continue taking exposures.
Previous Day’s Performance
On the previous day, the stock market recorded an increase of 353.41 points, or 0.44%, closing at 80,566.21 points. This steady rise reflects growing investor confidence and a positive outlook for the Pakistani economy.
