Pakistan stock market soars past record 136,000 points in equities-driven rally

F.P. Report

KARACHI: The Pakistan Stock Exchange (PSX) breached the 136,000-point mark to reach an all-time high on Monday, with financial analysts attributing the surge to investors’ continued preference of equities over fixed income assets.

The benchmark KSE-100 index closed at 136,502.53 points, gaining 2,202.77 points or 1.64 percent, as compared to the weekend close of 134,299.76 points.

Analysts said the surge was driven by investors shifting from fixed income assets to equity funds amid consistent inflows from mutual funds.

“Stocks closed at new all-time high amid speculations in the earnings season ahead of major earnings announcement due this week,” Ahsan Mehanti, CEO of Arif Habib Commodities, told media.

He said thin inflation that clocked in at 3.2 percent year-on-year in June, surging exports, and the government deliberations over privatization of state-owned enterprises (SOEs) also contributed to bullish close.

Naveed Nadeem, senior equity trader at Topline Securities Limited, said banking sector heavyweights led the momentum, collectively contributing 1,443 points to the benchmark index.

“Overall market activity remained vibrant, with trading volumes surpassing 838 million shares, while the total traded value climbed to PKR 37 billion,” he said. “CSIL (Crescent Star Insurance Limited) emerged as the volume leader, with 47 million shares.”

Shahid Ali Habib, CEO at Arif Habib Limited, said investors were turning to equities as fixed income yields were low.

“More liquidity is coming and the investors are trying to identify new alpha stocks,” he said.

Prime Minister Shehbaz Sharif expressed happiness over the surge in stocks as state media credited the government’s economic policies for the bullish trend.

“Providing a business-friendly environment in the country is our top priority,” Sharif said, adding that Pakistan had now embarked on the path to economic growth.