As PSX reaches an all-time high, bulls seize the lead

The KSE-100 index hit a record high on Thursday, rising about 600 points on the back of positive negotiations with the International Monetary Fund (IMF) and the privatization of state-owned businesses. This was the result of a bullish trend on the Pakistan Stock Exchange (PSX).

The benchmark KSE-100 index moved up 594.34 points, or 0.89%, from the finish of the previous session of 66,547 points to conclude at 67,142.12 points. With 67,246.02 points as the highest index of the day, it was followed by 66,690.94 points as the lowest.

Brokerage business Arif Habib Limited stated in a post on X that the PSX reached an all-time high when it passed the intraday high of 67,094.

Experts claim that the upward trend is indicative of recent economic advancements including Islamabad’s productive negotiations with the IMF mission and the government’s privatization ambitions.

The freshly created board of directors of Pakistan International Airlines (PIA) approved the airline’s privatization and restructuring plan earlier this week.

The upward trend, according to economic researcher Muhammad Sohail, is a result of the newly elected government’s quick privatization efforts, which is good news for investors.

According to the expert,the reason for the bullish run was the easy negotiations with the Fund’s mission during their visit to Pakistan in mid-March, as well as the consideration of another program with the international lender.

“Another reason why this has happened is due to a news floating in the stock exchange about Pakistan’s retention in emerging market by FTSE — a United Kingdom based index provider — which increased focus of foreigners,” he stated.

Sohail went on to say that over two months after the elections, Pakistan has received investments in PSX totaling about $50 million from foreign investors.

In response to a question on potential business-friendly policies, Khaqan Najeeb stated that, first and foremost, there is a stable government that is backed by the significant actions implemented by the Special Investment Facilitation Council (SIFC) during the previous six months.

Second, he said, Pakistan has an umbrella under the IMF program to handle its foreign gross finance requirements, which is currently more pressing than ever as the nation needs $25 billion annually.

“There is macro-stability in the country,” he said, adding that although the economy has slowed down to manage it, it is simpler to grasp how reserves have built up and how inflation is heading lower as well as Pakistan’s current account.

Regarding state-owned businesses (SOEs), Najeeb stated that Pakistan is compelled to take action.

He talked about how previous administrations have been urged to take action against loss-making SOEs. “This is a good push to take us out from PIA and focus towards the energy sector.”

The analyst went on to say that after the FTSE position for the next six months, international attention will shift to Pakistan. He also discussed the advantages of other investment opportunities in the nation, such real estate, which will have an effect on next economic trends.

“Overall, it is a good developing picture for Pakistan, if we can sustain it.”