KARACHI: With the help of institutional support and strong buying by both local and foreign investors, the Pakistan Stock Exchange (PSX) broke beyond the 81,000-point mark.
During intraday trading at 11:40 am, the benchmark KSE-100 index of the PSX increased by 483.98 points, or 0.6%, to close at 81,050.18 points, up from the close of 80,566.20 points in the previous session.
Speaking to tv, analyst Ahsan Mehanti of Arif Habib Corp stated that the stocks had hit an all-time high as investors considered the possibility of privatizing state-owned enterprises (SOEs) in light of Prime Minister Shehbaz Sharif’s promise to postpone the bidding process for Pakistan International Airlines (PIA) until August.
Mehanti also credited investors’ expectations for a new International Monetary Fund (IMF) agreement and the rupee’s rebound versus the dollar for the increase.
“Easy SBP (State Bank of Pakistan) policy rates played a catalyst role in bullish activity at PSX,” he stated.
The “soon-to-begin IMF talks for the new larger and longer program has given investors confidence in economic reforms and more stability in the economy,” according to Khurram Schehzad, CEO of Alpha Beta Core and economic analyst.
“As a result, the market stands inexpensive on multiples, so investors continue to take exposures,” he stated.
