KARACHI: On Monday, the Pakistan Stock Exchange’s key KSE-100 index surpassed the 48,000 level for the first time in nearly two years, showing a remarkable gain of over 900 points.
The index reached 48,034.59 points, closing with a 2.03 per cent increase from the previous day’s close of 47,076.99 points.
Arif Habib Corporation noted that it had been 24 months since the stock market reached this milestone, last achieved on August 23, 2021.
Salman Naqvi, the Head of Research at Aba Ali Habib Securities, attributed the current market rally to strong buying activity in the energy sector. He mentioned that the International Monetary Fund’s pressure on reducing the circular debt and the government’s measures were driving the interest in the exploration and production sector. Additionally, the net buying in the market had seen an increase after a prolonged period.
Furthermore, Naqvi highlighted that various international delegations, including the Chinese vice premier, were visiting Pakistan, and agreements on refineries and minerals were anticipated as part of the China-Pakistan Economic Corridor (CPEC) initiative.
Siddique Dalal, the CEO of Dalal Securities, also shared positive news that contributed to the market’s performance. Firstly, there were reports of releasing Rs 400 billion to reduce the circular debt, which would provide funds to the oil sector, leading to higher dividends. Secondly, a collaboration between four Pakistani state-owned enterprises and Saudi Arabia for a significant $10 billion refinery project within Pakistan boosted market sentiment.
However, Dalal warned that the upcoming monetary policy announcement might create a hurdle in the market’s performance.