The Pakistan Stock Exchange (PSX) surged to a new all-time high in intraday trading on Wednesday, driven by investor optimism surrounding the ongoing Shanghai Cooperation Organisation (SCO) summit. The benchmark KSE-100 index climbed 510.10 points, or 0.59 per cent, reaching 86,350.44 points at noon, up from the previous close of 85,840.34 points.
Market experts attribute the positive momentum to expectations of significant outcomes from the SCO summit, hosted by Pakistan. Awais Ashraf, Director of Research at AKD Securities, highlighted investor hopes for new investment commitments from China, coinciding with the visit of the Chinese Premier. “Investors are optimistic about positive outcomes from Pakistan’s hosting of the ongoing Shanghai Cooperation Organisation (SCO) summit and additional investment commitments from the Chinese Premier visit,” Ashraf noted.
The SCO, which includes major regional players like China, India, Russia, and Pakistan, is focused on issues such as trade, infrastructure development, and counterterrorism. Pakistan’s full membership since 2017 has provided the country with opportunities to strengthen diplomatic ties and enhance economic cooperation. The summit comes at a crucial time for the region, amid evolving geopolitical dynamics.
In addition to the diplomatic factors, Ashraf pointed to renewed investor interest in companies benefiting from the resolution of Pakistan’s circular debt issue, following recent cost-based tariff cuts in the power sector. “The expectation of further falls in fixed income yields in today’s T-bill auction due to a smaller debt-raising target compared to upcoming maturities is also contributing to the positive market sentiment,” he added.
Stocks had already rallied the previous day, driven by strong earnings outlooks for blue-chip companies and a reduction in political tensions after the PTI called off protests. As investors continue to monitor developments from the SCO summit, market sentiment remains positive, with hopes for sustained growth and stability in the coming weeks.