Stock exchanges hit record highs as ‘investors gain confidence’

A new history was created and the record of the highest level was broken due to the extraordinary boom in the Pakistan Stock Exchange.

The KSE 100 index on the Pakistan Stock Exchange hit an all-time high after the formation of the new federal government, breaking a three-and-a-half-month high. With this, Pakistan Stock Exchange ended today at an all-time high.

The stock market started on a positive note in the Pakistan Stock Exchange on Wednesday. 100 index crossed 66 thousand level at the beginning of business. The index rose to 66 thousand 81 after gaining another 175 points during trading.

In the second session, the index increased by 351 points and the index reached 66 thousand 257.

At the close of business, the index closed at a record level of 66,547 points with a total increase of 641 points. This is also the highest level in the history of Pakistan Stock Exchange.

Economic analyst, stock market broker and chief executive officer of AKY Securities, Amin Yusuf, while discussing the boom in the stock market, said that the new government of Pakistan has decided to sign a new agreement with the International Monetary Fund (IMF). Apart from the announcement, investors’ confidence has started to recover following the news of privatization of loss-making enterprises.

Speaking to Independent Urdu, he opined: ‘This is the reason why the share market is seeing a boom.’

In the stock market, the 100 index recently hit a new high of 2024 and the index rose by one percent.

Shares of Pakistan’s national airline PIA and Pakistan Telecommunication Company Limited (PTCL) remained the focus of investors’ attention during the trading day today after news of privatization of loss-making firms. The share price of both the companies got an upper lock.

Over the past seven months, PIA’s share price has surged 700 percent to cross Rs 27, while PTCL’s price has touched Rs 17 per share.

Federal Finance Minister Muhammad Aurangzeb will visit the Pakistan Stock Exchange on Friday for the first time after taking charge of the post.

Amin Yusuf said: ‘Compared to the caretaker government, the new federal government has started working in the right direction. After various announcements by the IMF, including the federal government’s announcement to increase the tax base, new agreements with the IMF, privatization of loss-making enterprises, the confidence of investors was restored and they started participating in the business more actively. .

That’s why the stock exchange is seeing a boom. But after news of possible sudden hike in electricity and petrol prices by the government, investor confidence may rise. Therefore, these prices should be increased in phases instead of raising them all at once so that investors’ confidence is restored.’

Arif Habib Securities Managing Director Ehsan Lagati while talking to Independent Urdu said that the main reason for the boom in the Pakistan Stock Exchange is the seriousness of the new government’s privatization of loss-making state-owned companies.

According to Ehsan Sahadi: ‘Whenever the government talks about the privatization of a state-owned company or institution, the interest of investors increases, due to which the share market is naturally booming.

Apart from this, the global stock market is also booming at the moment, due to which interest rates have decreased in various places.

He further said: ‘The rumor has spread rapidly in Pakistan too that the interest rate will be reduced soon. Therefore, investors’ confidence increased and hence the market is witnessing a boom.’