Pakistan Stock Exchange sets a new record as energy sector boosts market
Business
Surge comes as the IMF is pressing ahead with the demand to dispose of loss-making SOEs
KARACHI (Web Desk) – The Pakistan Stock Exchange reached a new high by touching 53,584.82 during intraday trading on Monday, just a session after crossing the 53,000 mark and beating the previous best of 53,127 touched in May 2017.
By the time this report was being filed at 12:14pm, the benchmark KSE-100 Index had gained 0.87 per cent, or 461.08 points, against the previous week’s closing of 53,123.03 after jumping to the new record high during the Friday session.
The surge is mainly driven by the oil and gas companies after the government decided to raise the gas prices to meet the International Monetary Fund (IMF) conditions, which will help dealing with the circular debt issue and.
With the improvement macroeconomic indicators such fiscal deficit, the data released by the Pakistan Bureau of Statistics showed that the inflation was declined in October when compared with the same month last year.
But the State Bank of Pakistan’s decision to maintain the interest rates at 22 per cent – although many for rooting for a first rate cut since the hikes began in October 2021 – amid the indications that the inflation is moving downwards after reaching its peaks is also an encouraging sign.
Moreover, the arrival of the IMF team for the first review of the $3 billion stand-by arrangement means the privatisation of the state-owned enterprises (SOEs) is getting nearer, as it is one of the main conditions set under the agreement.
Read more: Privatisation: IMF demands latest data of state-owned enterprises
In May 2017, the market had touched 53,127 – which remained the highest level till last week. But by March 26, 2020, the KSE-100 Index had nosedived to 27,267 during the PTI government – a period during which the seeds of the current economic mess were sown, with the later period saw some recovery.
However, the things started moving in the right direction when it appeared the IMF deal was coming. So the benchmark index, which was recorded at 40,152.05 on June 22 this year, has now surged by over 13,000 points since then.
