On Monday, the benchmark index of KSE-100 index of Pakistan Stock Exchange (PSX) crossed the 48,000 points barrier after a gap of two years. The official website of PSX briefed that at 10:50 am the market gained over 1,033.44 points. The gain indicates a growth of 2.15 per cent – on basis of previous closing of 47,076.99 points.
Last time the KSE-100 index went over 48,000 points was in August 24, 2021. After two years, on July 31 2023, the KSE-100 index has reached 48,110.43 points. Around 10 days ago the index crossed the record barrier of 46,000 points.
According to Head of Research in Aba Ali Habib Securities – Salman Naqvi, the milestone performance of PSX was due to strong buying in the energy sector. He added that reason of strong buying in the exploration & production sector is the pressure from the IMF as the global money lender has demanded to reduce the circular debt.
CEO Dalal Securities – Siddique Dalal, believed that the positive news of PSX performance is due to the release of Rs400 billion which would reduce the circular debt. He added that the development indicates flow of money in the oil sector and subsequently higher dividends.
Siddique Dalal further added that the announcement of four Pakistani state-owned enterprises collaborating with Saudi Arabia for $10 billion refinery project has also impacted the market. However, Dalal warned that upcoming monetary policy might halt the overall performance of market.