The Pakistan Stock Exchange (PSX) achieved another milestone on Tuesday, crossing 166,000 points for the first time in history.
The one hundred index rose to an intradic peak of 166,556.29, marking a gain of 2,708.61 points or 1.65 percent, while its lowest level of the day was 164,208.33, even more in 360.65 points or 0.22pc.
The continuous ascending trend in the Stock Exchange reflected the growing confidence of the commercial and business community in the government’s economic policies.
“The strong corporate results and additional liquidity in the market, preferably for shares, are pushing the highest market,” Pak Kuwait Investment Company Ltd’s head and development told Samiullah Tariq. Dawn.com.
This was the third consecutive record of record registration, with the KSE 100 reference index that rose to a historical maximum of 163,847 points, more than 1,590 points or 0.98 percent on Monday. The rally, which pushed the index closer to the 164,000 brand, was largely driven by the purchase of aggressive local mutual funds and institutional tickets.
Earlier this week, the Stock Market Index crossed the threshold of 162,000 points for the first time, driven by a series of geopolitical and economic developments. These included the signing of a financing installation of RS1.275TR with 18 commercial banks to address the circular debt of the electricity sector and a strategic defense agreement with Saudi Arabia that increased the improved bilateral trade hopes and financial support.
Yousuf M. Farooq, research director of Chase Securities, said: “The market is firmly in its optimism phase, backed by signs of an economic recovery and a constant improvement in the flow of geopolitical news.
“The demonstration is being promoted by a new retail participation together with sustained entrances of mutual funds, elevation of amplitude and turnover. With constructive positioning, all eyes are now in the continuous review of the International Monetary Fund (IMF), which most participants hope to conclude without problems, maintaining the intact risk appetite unless surprises arise.”
Awais Ashraf, research director of AKD Securities, added that investors were “optimistic” about a successful review and possible foreign direct investment, given the improved relationships with the United States and Saudi Arabia.
As the Government enters the crucial stage of negotiations with the IMF, market participants continue with the hope that any progress in the review strengthens the confidence of investors. However, the concerns delayed with respect to the continuous review and its impact on the fiscal stability of Pakistan, and some analysts point out that achieving objectives established by the IMF remains a challenging task.
