New Delhi: The Pakistan Stock Exchange closed 998.95 points higher at 81,459.28 on Thursday, compared to 80,461.33 on Wednesday owing to foreign investment into Pakistan’s equity markets owing to a decline in bond yields. The KSE100 rose 1.24 per cent while the Karachi 30 index was up 1.37 per cent. The KSE Index rose 0.67 per cent.
The PSX surged on the back of the US Federal Reserve’s 50 bps rate cut and positive cues from Asian peers. PSX surged past the 71,000 mark in April this year owing to positive dividends in the March quarter, according to a Reuters report.
The KSE-100 has risen 4.86 per cent in the past month and over 77 per cent in the past year. The Karachi 30 index was up 4.05 per cent in the past month and over 60 per cent in the past year. The KSE Index rose 4.45 per cent in the past month and over 70 per cent in the past year.
Why is the PSX rising?
The PSX also jumped on positive macroeconomic data such as a current account surplus, the Dawn Pakistan reported, citing Sana Tawfik, head of research at Arif Habib. Investors were also hopeful of an IMF green signal to a potential bailout deal for Pakistan, she added.
The Asian Development Bank also cleared a $2 billion annual concessionary loan for Pakistan. The loan tenure extends to 2027, the Express Tribune Pakistan reported. The PSX has risen 9.67 per cent in the past 5 days, and 6.64 per cent in the past 1 month. PSX was up 54.59 per cent in the past 6 months and over 84 per cent in the past year.
The PSE’s benchmark KSE-100 index has risen 30 per cent this year, backed by purchases worth $87 million by foreign investors, Bloomberg reported, citing internal data. Vanguard Group held stocks worth $160 million in Pakistan, Bloomberg reported, citing a note from Topline Securities.
The stock market has more room for a bull run led by a surge in fertiliser and energy shares, according to the report. Pakistani stocks are comparatively cheap and likely to garner more interest from investors, Bloomberg reported, citing AKD Group chairman Aqeel Karim Dedhi.
The Pakistan Stock Exchange surged 997.95 points to 81,459.28 on Thursday owing to a rebalancing of the UK’s FTSE and a decline in bond yields. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
