PSX surges past 72,000 points, bullish trend continues

PSX gains more than 900 points owing to improved economic metrics

KARACHI:

The bullish trend continued in the Pakistan Stock Exchange (PSX) on Wednesday as the KSE-100 index breached the 72,000 mark for the first time in the bourse's history.

Previously, in a landmark achievement, a record-breaking high was achieved as the PSX crossed 71,000 points on Monday.

During trading today, the PSX gained more than 900 points owing to improved economic metrics. Overall investor confidence, sound financial results, positive economic indicators and a possible reduction in interest rate contributed to the bourse achieving a new high.

The buying of stocks by foreigners in the cement and banking sectors also played a role. Investor confidence is also buoyed due to positive talks with the International Monetary Fund (IMF).

Experts say that if the government increases taxes in the real estate sector, investors will turn to the stock market and this could lead to KSE-100 eventually crossing the 100k mark in 2025.

The anticipated IMF loan programme, expected to range between $6-8 billion over three years, is anticipated to facilitate timely repayment of maturing foreign debt and fostering economic rejuvenation in the country.

Last week, on April 19, PSX snapped a three-day losing streak and notched up significant gains as the KSE-100 index reached a historic high above 70,900 with a surge of 620 points, the State Bank of Pakistan attributed the surge's major trigger to the anticipated deal with Saudi Arabia for a minority stake in Pakistan’s Reko Diq copper and gold mining project.

Earlier the same week, the national flag carrier was able to further new records in an earnings season rally backed by gains in oil and banking stocks on April 19, despite volatile trading and concerns over escalating geopolitical tensions.