The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index crossed the 48,000 mark on Monday for the first time in almost two years after gaining more than 900 points.

According to the PSX website, the index had recorded an increase of 1010.93 points at 11:10am, from the previous close of 47,076.99 points. The market eventually closed 957.60 points, or 2.03 per cent, up at 48,034.59 points.

Arif Habib Corporation said the KSE-100 index crossed the 48,000 level after 24 months. The stock market had last achieved this milestone on August 23, 2021, it added.

Aba Ali Habib Securities’ Head of Research Salman Naqvi attributed today’s rally to strong buying in the energy sector.

“We are seeing strong buying in the exploration and production sector because there is pressure from the IMF (International Monetary Fund) on reducing the circular debt and the government is taking measures,” he told Dawn.com.

Naqvi added that net buying in the stock market had also increased after a long time.

“A number of international delegations are coming to Pakistan, including the Chinese vice premier, and agreements on refineries and minerals are expected to be reached.

“Working on the China-Pakistan Economic Corridor (CPEC) has also begun,” Naqvi pointed out.

Meanwhile, Dalal Securities CEO Siddique Dalal said that there was “positive news” in the market regarding the release of Rs400 billion to reduce the circular debt. “This means the oil sector will get money resulting in higher dividends.”

Secondly, he continued, the market was bolstered by the announcement of a collaboration among four Pakistani state-owned enterprises and Saudi Arabia to execute a substantial $10bn refinery project within Pakistan.

However, Dalal said that the monetary policy announcement — which is due today — may create a hurdle in the market’s performance.