KARACHI (Dunya News) - The Pakistan Stock Exchange (PSX) continued its bullish sojourn on Wednesday following encouraging statements from Prime Minister Shehbaz Sharif regarding the upcoming visit of Saudi delegation aimed at bolstering economic ties with possible inking of memoranda of understanding worth $2 billion in various sectors and finance minister’s hint at further policy rate cut.
The KSE-100 index crossed the 86,000 milestone on epoch-making path with an increase of 586 points in the opening hours of trading in the stock market. It took the index to 86,245 points.
WHAT LEADS TO STOCK SURGE
Market analysts believe that the ongoing pace of bulls is due to reduction in core and headline inflation, and possible policy rate cut by 150-200 basis points in the upcoming Monetary Policy Committee meeting.
Moreover, they attribute the latest bulls’ rally to improving macroeconomic outlook with prospects of potential policy rate cut soon.
In addition, increased interest in the top of the line performing sectors which include automobile assemblers, cement, commercial banks, fertiliser, and oil companies has led to investors’ confidence boost.
PAKISTAN EXPECTS $2 BILLION INVESTMENT WITH SAUDI ARABIA
Meanwhile, Pakistan is expected to finalise investment agreements worth $2 billion with Saudi Arabia.
According to sources in the Ministry of Commerce, Saudi Arabia is set to invest more than $5 billion by 2027, with signing of nearly 30 agreements across various sectors.
A delegation of 40 or so companies from both the government and private sectors will arrive in Pakistan for investment discussions.
The agreements with Saudi Arabia will focus on sectors such as agriculture, information technology, and construction.
The Saudi delegation will also sign contracts related to the petroleum and power sectors, as well as agreements for food security, meat exports, and Pakistani rice exports.
Prime Minister Shehbaz Sharif mentioned in the last cabinet meeting that Pakistan would sign agreements worth over $2 billion with the Saudi delegation arriving later this week.