PM Shehbaz Sharif says stock surge shows Pakistan’s economy is on the right track for growth
ISLAMABAD: The Pakistan Stock Exchange (PSX) hit an all-time high on Friday, surpassing the 141,000-point mark, with analysts attributing the surge to the US trade tariff deal that helped boost investor confidence.
The KSE-100 index rose by 1,644.56 points or 1.18 percent to close at an all-time high of 141,034.98, up from the previous close of 139,390.42.
Pakistan and the US finalized a trade deal this week, under which the US will charge a 19 percent tariff on imports and also support the development of Pakistan’s oil reserves.
“US trade tariff deal at 19 percent is giving an edge over regional peers, and cut in fuel prices to ease inflation played a catalyst role in bullish activity at PSX,” Ahsan Mehanti, CEO of Arif Habib Commodities, said.
He noted that stocks also closed at an all-time high as investors reacted to the Consumer Price Index, which stood at 4.1 percent year-on-year for July.
Sana Tawfiq, Head of Research at Arif Habib Limited, also agreed the bullish momentum witnessed in the market was mainly driven by the trade deal finalized between Pakistan and the US.
“But I think more than the tariff, the key aspect of the deal was the talk of investment,” she said. “If we look at it in a broader context, there is potential for significant investments.”
In its market review on Friday, Topline Securities, a leading brokerage facility, said the KSE-100 Index increased by 1.3 percent week-on-week.
“During the start of the week, the market remained largely range-bound as investors closely watched June quarter result announcements,” it said. “However, during the latter part of the week, the market returned to its positive course, where news of the trade deal with the US garnered investor interest back into the market.”
Reacting to the market sentiment, Prime Minister Shehbaz Sharif described the bullish trend as a reflection of “investor confidence in government policies” in a statement.
“Facilitating business and investment remains among this administration’s top priorities,” he said, adding that the country’s economy was on the right trajectory and moving toward growth.
