On Monday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged past the 48,000 mark, reaching a 24-month high, and analysts are optimistic about continued positive sentiment in the coming days.
The market saw a bullish trend after Pakistan’s agreement with the International Monetary Fund (IMF), and later, news about the country’s mineral sector further strengthened the gains.
Intra-day trade data revealed that the benchmark index climbed by 1,010.72 points or 2.15%, settling at 48,062.56 points, a significant increase from the previous close of 47,076.9 points, marking a 21-month high.
Since Pakistan’s staff-level agreement with the IMF for a $3 billion Standby Agreement, the market has witnessed a remarkable gain of more than 6,600 points (15.9%).
Additionally, the government’s efforts to attract foreign investment through the Special Investment Facilitation Council (SIFC) include holding a Pakistan Mineral Summit starting from August 1, focusing on projects like Reko Diq and other mines.
Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment Company, attributed the rise in the market to the expected investments in the mineral sector, considering it a major contributing factor. He also mentioned that positive expectations of investments in other sectors could result from the momentum generated by the mining investments.
In a significant development, four leading Pakistani state-owned companies have signed a memorandum of understanding (MoU) to collaborate on a $10 billion Greenfield Refinery project to be jointly developed with Saudi Aramco at the strategic Gwadar port in Balochistan.
Raza Jafri, Head of Equities at Intermarket Securities, stated that today’s market run-up is broad-based, with banks leading the way due to strong results and valuation rerating. Additionally, energy stocks are rising on hopes of energy reforms and resolution of circular debt issues.