On Tuesday, the Pakistan Stock Exchange (PSX) witnessed a bullish trend as shares soared over 800 points amidst anticipation of a forthcoming Saudi investment. The benchmark index surpassed the 70,000 milestone, setting a new record for the fourth consecutive session. By 10:57 am, the KSE-100 index had escalated to 70,493.02, marking an increase of 873.04 points or 1.25%. This surge was largely attributed to optimism over Saudi investments and deposits, as noted by Mohammed Sohail, CEO of Topline Securities.
A significant development bolstering this optimism was the agreement between Prime Minister Shehbaz Sharif and Crown Prince Mohammed bin Salman to fast-track a $5 billion Saudi investment plan for Pakistan.
Shahab Farooq of Next Capital Limited highlighted factors such as the expected Saudi investment package, robust remittances, and ongoing foreign investment as key drivers of the market’s positive outlook. Additionally, the State Bank of Pakistan reported a surge in remittances to $3 billion in March, a peak since April 2022, largely driven by Ramazan.
Yousuf M Farooq from Chase Securities reflected on the market’s rally, fueled by economic optimism. He pointed out the significant remittance figures for March 2024, suggesting a potential current account surplus that could enhance currency stability and exert downward pressure on inflation. This scenario, he explained, would likely lead to lower interest rates and higher stock valuations, with market participants anticipating improved earnings and reduced borrowing costs.
Awais Ashraf of Akseer Research mentioned the boost in investor confidence following Saudi Arabia’s commitment to expedite its $5 billion investment. He also cited the anticipated monetary easing, driven by a declining inflation trend and the government’s tough economic measures, including the privatization of Pakistan International Airlines (PIA), as factors uplifting market sentiment.
 achieved a new record, with the KSE-100 index surpassing the 70,000 mark, buoyed by positive developments in Saudi investment and a significant uptick in foreign buying.){kind=link}