Shares at PSX soar 1,200 points as KSE-100 hits record high

Published April 8, 2024
This image shows activity on the Pakistan Stock Exchange on Monday. — Screenshot via PSX data portal
This image shows activity on the Pakistan Stock Exchange on Monday. — Screenshot via PSX data portal

Shares at the Pakistan Stock Exchange (PSX) traded in the green on Monday, gaining more than 1,200 points and crossing the 69,000 barrier.

Previously, the index had made headlines for crossing the 68,000 mark which Arif Habibi Limited had called its “highest-ever closing”. Analysts had attributed the gains to “aggressive buying” in the pharmaceuticals, and exploration and production stocks.

Today, the benchmark KSE-100 index gained 842.45 points, or 1.23 per cent, to stand at 69,259.23 — yet another record high — at 12:05pm from the previous close of 68,416.78. The index closed at 69,619.98, up by 1,203.20 or 1.76pc.

Yousuf M Farooq, director of research at Chase Securities, attributed the upward trajectory to “positive news about [potential] Saudi investment in Reko Diq, resulting in a strong performance for oil and gas stocks”.

Last week, news reports suggested that Saudi Arabia was likely to invest $1 billion in the Reko Diq project.

Farooq went on to say that “continued participation from foreign investors has contributed to the upbeat sentiment in the market”.

Shahab Farooq, director of research at Next Capital Limited, said that “encouraging developments with the International Monetary Fund (IMF) and expected investment by Saudi Arabia in Reko Diq project kept the sentiments positive in the market with low turnover ahead of the Eid holidays”.

The top sectors in today’s rally were noted to be technology and communication, power generation and distribution, refinery, and transport.

Tahir Abbas, head of research at Arif Habib Limited, said that the benchmark KSE-100 was trading at an “all-time high level”, crossing the 69,000 milestone.

“The market momentum is bullish as the prime minister is visiting Saudi Arabia and there are hopes of some potential bilateral agreements,” he said.

“Also, the market is upbeat as the finance minister is planning to leave for Washington for the IMF spring meeting where he is expected to negotiate for the new programme crucial for long-term sustainability of the country,” he said.

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