PSX hits all-time high, crosses 67,200 points

Market reaches new high after the UK-based FTSE announces decision to retain Pakistan in 'secondary emerging markets'

KARACHI:

The Pakistan Stock Exchange (PSX) hit an all-time high of 67,246 points before mid-day on Thursday after registering a 1% increase, maintaining its record-breaking spree on the second consecutive working day.

The market reached a new high after the UK-based global index provider (FTSE) announced its decision to retain Pakistan in the 'secondary emerging markets' category for the next six months against the expected decision to downgrade it.

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

The intra-day high gains, however, clipped to 67,079 points, limiting the surge by 0.80% or 531 points at 1:10 pm, Thursday.

Earlier, the market gained momentum in the wake of progress on securing the next IMF loan programme by Pakistan and fast-tracking the privatization process of Pakistan International Airlines (PIA).

While talking to The Express Tribune, JS Global Research Head of Equity Sales Syed Faran Rizvi said a lot of positive events on the country's economic front coupled with political stability have encouraged investors to take new bets.

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

PSX, which works on a future approach and reflects the outlook of the country's economy in day-to-day trading, is displaying that the country has sorted out many issues and is set to gear up economic growth.

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

Rizvi added that the banks and energy firms remain major beneficiaries of the ongoing economic reforms. Investors may buy stocks in the two sectors and many others like fertilizer, foods and textile sectors.

He projected the PSX rising to 70,000 points by the end of current fiscal year on June 30, 2024, adding that he sees a return of economic stability over the next two to three years.