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PSX breaks records with unprecedented high of 81,000 points

PSX breaks records with unprecedented high of 81,000 points

The Pakistan Stock Exchange (PSX) crossed the 81,000 mark on Tuesday, hitting a historic milestone on the back of robust buying by both local and foreign investors.

The benchmark KSE-100 index rose sharply by 483.98 points or 0.6% to reach 81,050.18 points in intraday trading after earlier closing at 80,566.20 points. Yesterday morning, trading started on a positive note but was soon disrupted by a fire incident at the PSX. The situation was later brought under control and trading resumed immediately after noon. The PSX recorded a notable rise of 353.41 points or 0.44% to close at 80,566.21 points. The market’s resilience despite recent challenges underscores its attractiveness to investors looking for growth opportunities.

Analysts attribute this record to several factors, including increased investor confidence in the potential privatization of state-owned companies. This is particularly evident in Prime Minister Shehbaz Sharif’s promise to launch a bidding process for Pakistan International Airlines (PIA) in August.

In addition, the recovery of the Pakistani rupee against the dollar and optimism regarding the upcoming talks with the International Monetary Fund (IMF) have contributed significantly to the optimistic sentiment.

Ahsan Mehanti of Arif Habib Corp highlighted the role of the State Bank of Pakistan (SBP) revised policy rates in stimulating market activity. Meanwhile, Khurram Schehzad, CEO of Alpha Beta Core, highlighted investors’ confidence in the expected economic reforms and stability and expects further market growth.

This rally comes against a backdrop of continued market stability despite temporary disruptions, such as the recent fire incident at the PSX building, which briefly halted trading activities but did not dampen overall investor sentiment.