KARACHI: Pakistan’s equity market continued to scale record highs with the KSE100 index breaching 60,700 for the first time on Tuesday, making analysts attribute the rally to Caretaker Prime Minister Anwaar-ul-Haq Kakar’s visit to the United Arab Emirates which has kindled hopes for multibillion-dollar investment inflows into the country.
The KSE100 gained over 918 points to close at 60,730 at the end of the trading session, amid ongoing bullish sentiments accompanying the Pakistan PM’s visit to the Gulf region.
During Kakar’s visit, Pakistan and the UAE signed multibillion-dollar memoranda of understanding (MoUs) across diverse sectors, including energy, port operations, waste water treatment, food security, logistics, minerals, and banking and financial services.
“Today’s rally is fueled by the expectations of the multibillion investment flows from the UAE under the SIFC [Special Investment Facilitation Council] initiatives,” Ahsan Mehanti, CEO of Arif Habib Corporation, told Arab News.
The SIFC is a civil-military hybrid forum established in July to fast-track decision-making and promote investment from foreign nations.
Mehanti also pointed to expected inflows of $700 million from the International Monetary Fund (IMF) under a $3 billion short-term financing program, which would help unlock other bilateral financing sources for Pakistan.
He continued that there were expectations of monetary policy ease after the interest rates peaked in recent months.
Analysts have noted that the bullish sentiment at the bourse, which continued to hit record highs, was also fueled by improving macroeconomic indicators.
“Low valuation coupled with foreign buying is supporting this market rally,” Muhammad Sohail, CEO of Topline Securities, commented.
He added that investors were confident that with economic stability in Pakistan, the national currency would also stabilize and interest rates would fall.
“This five-month, 50 percent rally in KSE100 Index is one of the fastest in 20 years,” Sohail continued, noting that the share prices had risen, though the market’s price-to-earnings ratio was still below four times.
Pakistan’s stock market soars past 60,000 points, reaching new high on Gulf investment hopes
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Pakistan’s stock market soars past 60,000 points, reaching new high on Gulf investment hopes
- Analysts say the rally at the market is one of the fastest in 20 years despite a lower price-to-earnings ratio
- The bullish sentiment also owes to the expected inflows of $700 million under the IMF short-term loan
International Cricket Council in talks to revive India-Pakistan T20 World Cup clash
- Pakistan face two-point loss and net run-rate hit if they forfeit Feb. 15 match
- ICC seeks dialogue after Pakistan boycott clash citing government directive
NEW DELHI, India: The International Cricket Council is in talks with the Pakistan Cricket Board to resolve the boycott of its T20 World Cup match against India on February 15, AFP learnt Saturday.
Any clash between arch-rivals India and Pakistan is one of the most lucrative in cricket, worth millions of dollars in broadcast, sponsor and advertising revenue.
But the fixture was thrown into doubt after Pakistan’s government ordered the team not to play the match in Colombo.
The Pakistan Cricket Board reached out to the ICC after a formal communication from the cricket’s world body, a source close to the developments told AFP.
The ICC was seeking a resolution through dialogue and not confrontation, the source added.
The 20-team tournament has been overshadowed by an acrimonious political build-up after Bangladesh, who refused to play in India citing security concerns, were replaced by Scotland.
As a protest, Pakistan refused to face co-hosts India in their Group A fixture.
Pakistan, who edged out Netherlands in the tournament opener on Saturday, will lose two points if they forfeit the match and also suffer a significant blow to their net run rate.
India skipper Suryakumar Yadav said this week that his team would travel to Colombo for the clash.
Pakistan and India have not played bilateral cricket for more than a decade, and meet only in global or regional tournaments.
