The PSX reaches an all-time high, surpassing 67,200 points

KARACHI:

The Pakistan Stock Exchange (PSX) hit an all-time high of 67,246 points before midday on Thursday after registering a 1% gain, maintaining its record high for the second consecutive trading day.

The market hit a new high after the UK-based global index provider (FTSE) announced its decision to keep Pakistan in the ‘secondary emerging markets’ category for the next six months against an expected downgrade.

The FTSE is one of two global indices tracked by foreign investors managing close to $16 trillion in assets. The decision may help Pakistan attract extensive foreign buying into local stocks.

Intraday high gainers, however, eased to 67,079 points, capping gains of 0.80% or 531 points at 1:10 pm on Thursday.

Earlier, the market gained momentum following progress in securing Pakistan’s next IMF loan program and fast-tracking the privatization process of Pakistan International Airlines (PIA).

While talking to The Express TribuneJS Global Research head of equity sales Syed Faran Rizvi said several positive developments on the country’s economic front coupled with political stability have encouraged investors to take new bets.

The downward trajectory in the inflation reading and the much-needed energy reforms, including ending subsidies in gas pricing, are the two key developments in the economy that will boost economic activities in Pakistan, he argued.

The PSX, which works on a forward-looking approach and reflects the outlook of the country’s economy in daily trading, shows that the country has settled many issues and is set to accelerate economic growth.

The downward trend in inflation readings would soon result in the central bank making its first rate cut. This will allow businesses to resume bank lending and increase production.

Rizvi added that banks and energy companies remain major beneficiaries of ongoing economic reforms. Investors can buy shares in the two sectors and many others such as the fertilizer, food and textile sectors.

He predicted the PSX would rise to 70,000 units by the end of the current fiscal year on June 30, 2024, adding that he sees a return of economic stability in the next two to three years.