PSX reaches all-time high above 86,500 points on positive SCO vibes

Stocks hit a new all-time high above 86,500 on Wednesday as earnings season reignited investor interest in high-cap stocks, with positive sentiment stemming from the Shanghai Cooperation Organization (SCO) summit and optimism for political stability.

The benchmark Pakistan Stock Exchange (PSX) KSE-100 gained 673 points to 86,513 in intraday trade at 10:41 am, from yesterday’s close of 85,840.

The two-day meeting of the Council of Heads of Government (CHG) of the SCO began in Islamabad on Tuesday amid hopes of possible positive developments before it concludes today.

Reacting to the early rally, Khurram Schehzad, CEO of Alpha Beta Core, said: “The successful organization of a major global event like the SCO summit, which brings together regional leaders, especially the arrival of the Indian foreign minister, must to have further strengthened investor confidence. .”

Indian Foreign Minister Subrahmanyam Jaishankar arrived in Pakistan on Tuesday in the first such visit in nearly a decade for the SCO meeting. It has been nearly a decade since a foreign minister from Pakistan’s arch-rival India visited amid frosty relations between the two nuclear powers.

Stocks rebounded on Tuesday, closing 579 points higher, boosted by a positive earnings outlook and optimism surrounding the Shanghai Cooperation Organization (SCO) summit in Islamabad.

Saad Ali, Director of Research at Intermarket Securities, informed Geo.tv that investor sentiment has strengthened following the progress on the much-contested bill proposed by the government and the low probability of PTI protests in Islamabad.

“The market has also digested and priced in the negative impact of termination/amendment of IPAs of old IPPs,” Ali added.

Ahsan Mehanti at Arif Habib Corporation, in conversation with Geo.tvsaid stocks rallied as investors looked at reduced political uncertainty and economic gains from the SCO summit.

“Falling bond yields and the government’s talks to privatize state-owned enterprises contributed to the bullish activity on the PSX,” Mehanti added.

The meeting of the SCO, a Eurasian security and political grouping founded in 2001 by Russia and China, is the highest-profile event hosted by the South Asian nation in years.

This is a story that is being developed and updated with more details.