KARACHI: The Pakistan Stock Exchange (PSX) witnessed a bullish trend on Thursday as the KSE-100 hit an all-time high after gaining nearly 600 points amid upbeat talks with the International Monetary Fund (IMF) and privatization of state-owned enterprises.
The KSE-100 benchmark index closed at 67,142.12 points after a change of 594.34 points or 0.89%, which is an increase from the previous session’s close of 66,547 points. The highest index of the day remained at 67,246.02 points, while the lowest was recorded at 66,690.94 points.
Arif Habib Limited, a brokerage, noted in a note on X that the PSX hit an all-time high as it crossed the 67,094-mark, which was the previous high on an intraday basis.
The positive trend, according to experts, reflects recent economic developments, such as Islamabad’s successful talks with the IMF mission, as well as the government’s privatization plans.
Earlier this week, the privatization and restructuring plan of Pakistan International Airlines (PIA) was approved by the recently constituted board of directors.
Muhammad Sohail, an economic analyst, said the bullish trend reflects the newly elected government’s swift moves towards privatisation, a positive development for investors.
The reason for the bull run, the analyst said, was smooth talks with the fund’s mission that visited Pakistan in mid-March, as well as discussions on another program with the global lender.
“Another reason why this has happened is the stock market news of Pakistan’s retention in emerging markets by FTSE – the UK-based index provider – which has increased the focus of foreigners,” he said.
Sohail added that Pakistan received around $50 million worth of investment from foreign investors in PSX almost two months after the elections.
Khaqan Najeeb, when asked if the government would make any pro-business policies, said that firstly, there is a stable government which is supported by the strong measures taken by the Special Investments Council (SIFC) in the last six months.
Second, he added, the IMF program provides an umbrella for Pakistan to deal with its international gross financial needs – which remains a persistent problem and is currently on the rise as the country needs $25 billion every year.
“There is macro stability in the country,” he told Geo News, adding that it is easier to understand in terms of the rise in reserves and inflation trending downward, and Pakistan’s current account, even though the economy has slowed. down to handle it.
Commenting on state-owned enterprises (SOEs), Najeeb said Pakistan was forced to do something about them.
He spoke of urging past governments to do something about loss-making state-owned enterprises. “It’s a good impetus to get out of PIA and focus on the power sector.”
The expert added that foreign interest will turn to Pakistan for the next six months after getting FTSE status. He also spoke about the benefits of other investment avenues in the country, such as the real estate sector, which will also influence economic trends.
“Overall it is a good development for Pakistan if we can sustain it.
