Pakistan stock market soars to all-time high

Karachi, Dec 10 (IANS) The Pakistan Stock Exchange (PSX) wrapped up the trading week on a historic note as the benchmark KSE-100 index soared to an unprecedented all-time high above 66,000 points, a media outlet reported.

This record-setting close was fueled by the visit of caretaker Prime Minister Anwaarul Haq Kakar, who marked the launch of a Pak Rs 30 billion Ijara Sukuk, Express Tribune reported.

The index witnessed an impressive increase of 4,532 points, or 7.3 per cent week-on-week (WoW), settling at 66,223.63. The remarkable surge was attributed to the outstanding performance of major sectors, including banks, fertilisers, and exploration and production (E&P).

Throughout the week, bullish sentiments dominated the trading floor, bolstered by several encouraging factors. These included anticipation of the International Monetary Fund’s (IMF) executive board meeting on January 11 for the approval of a $700 million loan tranche, the media outlet reported.

The Prime Minister’s remarks about the improvement in Pakistan’s fiscal and external accounts, along with extensive participation from foreign investors, high returns, and a stable exchange rate, contributed to the rapid advance of the index.

Monday witnessed the index reaching a record high due to anticipation of a free trade agreement with the Gulf Cooperation Council (GCC) and measures for establishing a sovereign wealth fund, the media report said.

The following day, the bourse reached close to 63,000 points, driven by a 9 per cent month-on-month rise in oil sales and anticipation surrounding the upcoming release of the IMF loan tranche.

On Wednesday, stocks surged to a new peak fueled by a positive economic outlook and a reduction in external debt, attracting investors’ interest in specific sectors.

The next day, the PSX broke another record amid heavy trading, with news of potential Chinese investment worth $1.5 billion in Pakistan Refinery Limited (PRL), inspiring market players to engage in heavy buying. Additionally, investors were encouraged by the Asian Development Bank’s (ADB) project financing of around $650 million for Pakistan.

Friday’s extraordinary performance propelled the KSE-100 index to a new all-time high above 66,000 points, with significant strength drawn from Prime Minister Kakar’s visit for the launch of a Rs 30 billion Ijara Sukuk, the media outlet reported.

–IANS

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