ISLAMABAD: The Pakistan Stock Exchange (PSX) on Thursday gained 1,700 points, surging past the 97,000 mark during intra-day trading for the first time, with analysts attributing the rally to strong economic data and rising investor optimism over government reforms.
The benchmark KSE-100 index rose by 1,781.94 points, or 1.86 percent, to close at 97,328.39. It touched an unprecedented peak of 97,437.15 during intra-day trading.
Analyst Ahsan Mehanti of Arif Habib Corporation said surging foreign exchange reserves and speculations over the government’s decisions on economic reforms and privatization “played a catalyst role in the record surge at the PSX.”
“Stocks are bullish, led by scrips across the board as investors weigh a drop in government bond yields and robust economic data for current account surplus, remittances, exports and foreign direct investments,” Mehanti told Arab News.
In October, Pakistan’s external current account recorded a surplus of $349 million, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
A bullish trend has been observed in the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. Economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.
In the past, the country faced a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation. Last year, Pakistan narrowly avoided a sovereign default by clinching a last-minute $3 billion IMF bailout deal.
Pakistani stocks surge past 97,000 as investor confidence grows on economic reforms
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Pakistani stocks surge past 97,000 as investor confidence grows on economic reforms
- Analysts attribute rally to strong economic data, rising optimism over government reforms
- Stock market has remained bullish since the government slashed policy rate in November
Three security personnel, five militants killed in separate incidents in Pakistan’s northwest
- An army major and five militants were killed in an operation in Bajaur, while gunmen shot dead two cops in Lakki Marwat and Tank
- Pakistan has blamed the surge in militancy in its northwest on Afghanistan and India-backed militants, Kabul and New Delhi deny this
PESHAWAR: Three security personnel, including an army major, and five militants were killed in separate incidents in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, police and military said on Monday, amid a surge in militancy in the province bordering Afghanistan.
Security forces conducted an operation in KP’s Bajaur district on reported presence of Pakistani Taliban militants, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
Five “Indian-sponsored” militants were killed during the operation, while it also resulted in the killing of Major Adeel Zaman who was leading his troops from the front.
“Weapons and ammunition were also recovered from the killed khwarij [militants], who remained actively involved in numerous terrorist activities,” the ISPR said in a statement.
“Sanitization operations are being conducted to eliminate any other Indian sponsored kharja [militant] found in the area.”
Separately, gunmen abducted Sajjad Hussain, a police constable who was traveling home on leave, in KP’s Tank district and later shot him dead, according to district police spokesman Younus Khan.
“The martyred constable, Sajjad Hussain, was posted at the Nasran checkpoint,” Khan told Arab News. “He was intercepted, forced off his vehicle, and shot on Shah Alam–Nasran Road by militants.”
Another policeman, Assistant Sub-Inspector Mumtaz Ali, was shot dead by gunmen in Pezu area of the nearby Lakki Marwat district.
“The officer, who was posted in Tank, was on his way to his duty station when assailants intercepted his vehicle, forced him out, and opened fire, killing him on the spot,” Khan added.
No group immediately claimed responsibility for the police killings, which came a day after police killed eight militants in KP’s Karak district.
Pakistan has struggled to contain a surge in militancy in KP in recent years. Militant groups such as the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), have frequently targeted convoys of security forces, police stations and check-posts besides kidnapping government officials in the region.
Islamabad has frequently accused Afghanistan of allowing its soil and India of backing militant groups, including the TTP, for attacks against Pakistan. Kabul and New Delhi have consistently denied this.
