KSE-100 index surges past 46,000 points

KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a remarkable upswing during intraday trading on Friday, crossing the 46,000 point mark with an increase of 600 points.

From yesterday’s closing figure of 45,398.31, the index experienced a substantial surge of 675.30 points, reaching an impressive 46,073.61 points at 3:46 pm, according to Dawn.com.

Ahsan Mehanti, the Director of Arif Habib Corporation, attributed this surge to foreign investments flowing into the energy sector.

He also mentioned two significant factors that contributed to the market’s positive momentum: the Islamabad High Court’s (IHC) judgment deeming the implementation of a super tax on corporations as unlawful, resulting in the cancellation of all related notifications, and reports of the central bank maintaining the policy rate unchanged.

Mehanti pointed out that these developments played a pivotal role in the index’s crossing the 46,000 threshold after a hiatus of 15 months.

Salman Naqvi, the head of research at Aba Ali Habib Securities, echoed similar sentiments and ascribed the rally to the IHC’s super tax ruling.

He highlighted that all industries have experienced positive developments, particularly since the announcement of the standby agreement with the International Monetary Fund (IMF), which generated significant potential.

Naqvi expressed optimism, stating that the market may continue to rise if it manages to close above 46,000.

Amir Shehzad, Director of First National Equities Limited, described the market’s recent surge as a “technical correction.” He predicted that the market might surpass the 47,000 point threshold in the following week.

Furthermore, Shehzad emphasized that the market would likely benefit from the central bank’s maintenance of its current monetary policy, which could lead to a new record.

Market analysts and investors are now closely monitoring the ongoing developments, expecting the PSX to maintain its upward trajectory amid positive economic indicators.