KARACHI: Wednesday’s early-session gain, which was mostly sparked by an MSCI upgrade, saw stocks cross 75,000 points for the first time before closing flat due to late profit selling, according to dealers.
The benchmark KSE-100 index rose 132 points, or 0.18%, to end the day at 74,663.98. At 10:11 a.m. intraday trading, it had reached a high of 75,115.32. The KSE-100 Index had ended at 74,531.19 points the day before.
In a note, Muhammad Sohail, CEO of Topline Securities, claimed that rising foreign fund investments were the reason the market hit a record high of 75,000 points.
Furthermore, as part of its semi-annual review, MSCI included the National Bank of Pakistan (NBP) in its Frontier Market Index.
It is anticipated that this move will increase Pakistan’s index weight and draw more foreign passive investment to PSX.
As Pakistan approaches the International Monetary Fund (IMF) for a new loan program to ensure the continuance of repaying maturing foreign debt and to create financial space to assist the expansion of the economy, international investors are exhibiting increased interest and confidence.
Geo.tv was informed by Samiullah Tariq, head of research at Pak-Kuwait Investment Company, that the market’s strong reaction was a result of the optimism around the new IMF program.
Tariq went on to say that the market is also being driven by forecasts of a reduction in interest rates in the upcoming monetary policy as a result of falling inflation.
A day earlier, investors bet on a good conclusion from discussions with the IMF on a new loan program and promises of Saudi investment, sending equities soaring to a new all-time high.
