PSX jumps, slumps, recovers on Friday; Sukuk bond launched

KARACHI: The Pakistan Stock Exchange (PSX) opened trading on Friday at 119,961.91 points, with positive momentum. Minutes into trading, the index was hovering around 120,380.92 points, shooting over 400 points upwards.

However, soon after the bears set in, leading to nearly 600 points fall – 200 points below opening level at the morning’s lowest at 119,734.06 points.

With the announcement of climate financing Sukuk bond launch, once again, the benchmark KSE-100 index picked up once again, recovering some of the losses and reducing fluctuations. Around 10 AM, the index had recovered close to the opening level.

PAKISTAN’S FIRST SUKUK LAUNCHED

Finance Minister Muhammad Aurangzeb, via a video link address, announced the launch of Pakistan’s first Sukuk bond on Friday. He congratulated the PSX and said that the market had closed at record high yesterday.

He said that Pakistan is celebrating Youm-e-Tashakur today, and the country’s financial representatives are also holding meetings with investors in Washington, US and London, UK. He said that the world is satisfied with Pakistan’s macroeconomic stability.

The finance minister also said that work on FY2025-26 budget is underway, and stakeholders are being consulted. “Stakeholders are submitting budget proposals,” he said, adding, “We have to adopt the Malaysian model.”

Talking about the Sukuk launched to raise climate financing, he said that climate change has become a threat to Pakistan. “We are working on financing to deal with environmental impacts,” he added.

PSX Chairperson Shamshad Akhtar also addressed the ceremony, saying that Islamic finance must be promoted. She said that PSX is trying to partner with foreign partners. She highlighted the need for value-based financing in her speech.

“These are proud moments for the PSX. Green Sukuk is issued under full Sharia compliance,” she said.

She added that unique opportunities are emerging for investors, and Green Finance Framework will further pave the way for development. “Green Sukuk launch aims to improve environmental well-being and economy, and the domestic Green Sukuk Bond will open new doors of financing,” she said.

She said that Pakistan must move towards global green financing, adding that more attention needs to be paid to Sharia compliance. “Islamic finance is the way of the future,” she said.

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