KARACHI: The Pakistan Stock Exchange (PSX) continued its record-breaking rally on Thursday, with the KSE-100 Index gaining 795.75 points, or 0.67%, to close at an all-time high of 118,769.77.
At one point during the day, the index touched an intraday high of 119,421.81, marking a new milestone for the market. This extended the positive momentum, fueled by investor optimism surrounding economic reforms and government negotiations with the International Monetary Fund (IMF).
The surge in the PSX was further supported by discussions around the privatisation of state-owned enterprises (SOEs) and expectations of a reduction in industrial power tariffs. Investor sentiment remained upbeat as the government’s efforts to manage circular debt, particularly with IMF support, appeared to be progressing positively.
Prime Minister Shehbaz Sharif expressed his satisfaction over the PSX reaching the 119,000-point mark, calling it a sign of increasing confidence in the government’s economic policies. He attributed the improvement to the government's efforts to create a business-friendly environment, which had contributed to a positive shift in economic indicators.
Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, noted that the rally was largely driven by blue-chip stocks, as investors reacted to news of the IMF’s potential approval of the government's Rs1.5 trillion circular debt management plan. Additionally, the government's deliberations on the privatisation of SOEs and expectations of a cut in industrial power tariffs acted as further catalysts for the bullish trend.
Market confidence was strengthened by reports that the IMF had approved Pakistan’s request to borrow Rs1.25 trillion ($4.5 billion) from domestic banks to reduce circular debt, without increasing public debt. This sparked investor enthusiasm, with many seeing the potential for further economic improvements.
The bullish trend has now been in place for five consecutive sessions, with energy and banking stocks leading the way. Despite some setbacks, like the Rs392 billion raised through the Treasury Bills auction, the market’s upward trajectory remains firmly intact.
