KARACHI:
The Pakistan Stock Exchange (PSX) soared to a new all-time high on Monday, propelled by Fitch’s positive outlook on Pakistan banks and Moody’s upgrade of the country’s rating to Caa1.
Strong earnings, rupee stability and optimism about Pakistan-US trade and investment deals strengthened investor sentiment, driving the KSE-100 index up by 1,705 points to above 148,000, stated analysts.
Ahsan Mehanti of Arif Habib Corp commented that stocks closed at a new all-time high as Fitch Ratings provided investors with a brighter outlook on Pakistan banks amid Moody’s rating upgrade to Caa1.
A strong earnings outlook, rupee stability, speculation about Pakistan-US trade and investment deals and the government seeking further US export tariff incentives led the PSX to a record close, he said.
At the end of trading, the benchmark KSE-100 index recorded an increase of 1,704.79 points, or 1.16%, and settled at 148,196.42.
According to Topline Securities, bulls staged a strong comeback in Monday’s trading session, with the KSE-100 index surging 1,904 points intra-day before closing at an all-time high of 148,196, up 1,705 points.
Market sentiment brightened on reports of the government’s circular debt reform drive, which entails reducing liquefied natural gas (LNG) cargoes, revising RLNG pricing and mobilising funds through LNG diversion savings, state-owned enterprises’ dividends and power sector receivables.
Detailed proposals are expected to be announced next week, sustaining investor optimism, Topline said. Heavyweights such as Lucky Cement, Meezan Bank, Bank AL Habib and Pakistan Petroleum contributed a combined 756 points to the index’s upward momentum, it added.
Overall trading volumes increased to 610.3 million shares compared with Friday’s tally of 473.6 million. Traded value rose to Rs39.2 billion as compared to Rs32.9 billion in the previous session.
Shares of 487 companies were traded. Of these, 283 stocks closed higher, 175 dropped and 29 remained unchanged. WorldCall Telecom was the volume leader with trading in 40.7 million shares, falling Rs0.01 to close at Rs1.40.
