PSX soars to new peak

Index rises 383 points owing to progress on resolving debt crisis

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KARACHI:

The Pakistan Stock exchange (PSX) closed at a record high on Tuesday, though the benchmark KSE-100 index fluctuated within a narrow range amid uncertainty surrounding the budget announcement.

The index registered the intra-day high of 970 points and intra-day low of 51 points, before settling at 122,024, an increase of 383 points.

Analysts noted that the record budget outlay of Rs17.6 trillion, alongside approval of Rs800 billion for the Public Sector Development Programme (PSDP), played a key role in the record high close at the PSX. The IMF's approval of bank loans to settle the Rs2 trillion circular debt and speculation about tariff rationalisation buoyed market sentiment.

According to Ahsan Mehanti of Arif Habib Corp, stocks reached an all-time high, led by blue chips, as investors weighed a record budget outlay of Rs17.6 trillion and the approval of Rs800 billion for the PSDP.

He added that surging global crude oil prices, the IMF's approval of bank loans to resolve the Rs2 trillion circular debt crisis in the gas sector and speculation about rationalisation of import tariffs in the federal budget played the role of catalysts in bullish close at the PSX.

At the end of trading, the benchmark KSE-100 index recorded an increase of 383.44 points, or 0.32%, and settled at 122,024.44.

In its review, Topline Securities commented that the stock market witnessed a range-bound session, with the index fluctuating within a narrow band, amid uncertainty surrounding the budget announcement. The index recorded the intra-day high of 970 points and intra-day low of 51 points. It closed at 122,024, up 383 points.