The Pakistan Stock Exchange (PSX) crossed the 48,000 mark on Monday, following a peak unseen in the past 24 months, sparking positive projections from market analysts for the coming days.
The upward trajectory gained momentum following Pakistan’s successful negotiations with the International Monetary Fund (IMF). Additional fortification came from promising updates surrounding the nation’s mineral sector.
Rise in Intraday Trading and Factors Influencing the Upsurge
The market showed tremendous vitality during intraday trading, with the KSE-100 index soaring by 1,010.72 points, equivalent to a 2.15% increase, touching 48,062.56 points from the preceding close at 47,076.9 points. This pinnacle marks a phenomenal 21-month high.
The market has witnessed a robust increase of over 6,600 points, translating to a 15.9% surge since Pakistan’s staff-level consensus with the IMF on a $3 billion Standby Agreement.
In a strategic move to lure foreign investment, the government plans to launch the Pakistan Mineral Summit, under the Special Investment Facilitation Council (SIFC), on August 1. The Summit will focus on the Reko Diq mines and other mineral projects.
Further fuelling the positive sentiment, four state-owned Pakistani companies have signed a Memorandum of Understanding (MoU) to co-develop a $10 billion Greenfield Refinery project with Saudi Aramco, located at the strategic Gwadar port in Balochistan.
The current market rally had broad participation, propelled by the banking sector on the back of strong earnings and revaluation of their worth, and energy stocks buoyed by energy reform and circular debt resolution prospects. The market’s reversal could be attributed to Pakistan securing the IMF SBA program.
