Stock market likely to surpass 96,000 points today, again!

KARACHI: The Pakistan Stock Exchange (PSX) records yet another stride as investor confidence continues to reflect the country’s macroeconomic outlook. The benchmark KSE-100 index closed at 95,856.66 points after briefly crossed the 96,000 points mark. Today (Wednesday), the index is expected to cross the psychological limit once again, and even close on a new historic high.

The recent announcement by Finance Minister Muhammad Aurangzeb on the success of International Monetary Fund’s (IMF) mission, higher earnings data, and incoming climate financing from the Asian Development Bank (ADB) have all played a part in improving the market sentiment.

For local investors, the power sector reforms and the plans to privatise state-owned enterprises (SOEs) have lend credibility to the argument of economic recovery. For foreign investors, the improving macroeconomic indicators after IMF’s loan and new foreign direct investment (FDI) agreements have had the similar effect.

Yesterday, the ADB and Pakistan inked $500 million loan agreement, and the Finance Minister Aurangzeb also assured of no additional taxes on the salaried class or the manufacturing sector. As a result, the index catapulted 861 points upwards, to close at 95,856.66 points.

Today, the KSE-100 index is expected to add to the bullish trend, and cross the 96,000 points limit once again – with greater momentum.

Also read: Stock market expected to continue bullish run, at least until year-end