The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) crossed the 48,000 threshold on Monday for the first time in over two years after increasing by more than 1,000 points.
The market posted a gain of 1010.93 points at 11:10am, up 2.15 percent from the previous closing of 47,076.99 points, according to the PSX website.
After 2 Years KSE-100 Index Crossed 48000 Points
After 24 months, the KSE-100 index crossed the 48,000 threshold, according to Arif Habib Corporation. On August 23, 2021, the stock market had last reached this milestone, it continued.
KSE100 crossed 48k level after 24 months
KSE-100 index went up by 977 points (48,054 pts, +2.07%, on intraday basis) DoD ; the 48k level crossed after ~24 months (last seen on Aug 23, 2021).
The market gained 6,601 points (+15.9%) since staff level agreement with the IMF for… pic.twitter.com/EowHmLVA2L
— Arif Habib Limited (@ArifHabibLtd) July 31, 2023
Salman Naqvi, head of research at Aba Ali Habib Securities, credited today’s surge to active buying in the energy sector.
“We are seeing strong buying in the exploration and production sector because there is pressure from the IMF (International Monetary Fund) on reducing the circular debt and the government is taking measures,” he told the news agency.
Naqvi added that net buying in the stock market had also increased after a long time.
“A number of international delegations are coming to Pakistan, including the Chinese vice premier, and agreements on refineries and minerals are expected to be reached.
“Working on the China-Pakistan Economic Corridor (CPEC) has also begun,” Naqvi pointed out.
The KSE-100 index is in the plus, according to Amir Shehzad, Director of First National Equities Limited, since the oil industry is so heavily weighted.
Siddique Dalal, CEO of Dalal Securities, stated that the market has received “positive news” regarding the discharge of Rs. 400 billion to decrease the circular debt. This will result in increased dividends for the oil sector.
Second, he said, the news of a partnership by four Pakistani state-owned companies and Saudi Arabia to carry out a sizeable $10 billion refinery project inside Pakistan boosted the market.
However, Dalal warned that the market’s performance would be hampered by the monetary policy statement, which is scheduled today.
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