KARACHI: The Pakistan Stock Exchange (PSX) briefly crossed the 140,000-point mark during intraday trading on Thursday, with analysts attributing the surge to strong investor confidence following a “landmark” trade deal between Pakistan and the United States.
The KSE-100 index reached an intraday high of 140,215.22 points, gaining by 1,802.97 points or 1.3 percent from the previous close of 138,412.25. However, the Pakistani stocks closed at 139,390.42 points, posting a gain of 978.17 points or 0.71 percent.
The investor confidence was driven by Pakistan’s finance ministry announcement on Wednesday that Islamabad had reached a trade deal with Washington after weeks of extensive negotiations. The ministry said the deal would pave the way for reduced tariffs and deeper economic ties. US President Donald Trump, meanwhile, separately spoke about a new partnership with Pakistan to develop its oil reserves.
Ahsan Mehanti, CEO of Arif Habib Commodities, said rupee stability and reports of rising Pakistan sovereign bonds following a recent S&P ratings upgrade played a key role in fueling bullish activity at the PSX.
“Stocks traded near all-time high after US strikes trade deal with Pakistan affirming work over massive oil reserves,” he told Arab News.
The agreement between Pakistan and the US is expected to reduce reciprocal tariffs, marking the beginning of a new era of economic collaboration in sectors such as energy, mining, IT, cryptocurrency and more, Pakistan’s finance ministry said.
Meanwhile, Sana Tawfik, the head of research at Arif Habib Ltd., also said the “primary driver” behind the stock market’s intraday impressive performance was the development regarding the US-Pakistan trade tariff deal.
“The deal triggered positive momentum, especially in the energy chain, which was largely in the green and led the market’s upward movement,” she told Arab News.
“Another factor was the ongoing results season — today’s banking sector results came in as well, which were more or less in line with expectations, contributing to market sentiment.”
Prime Minister Shehbaz Sharif had also reacted to the development, expressing hope that the deal would pave the way for deeper collaboration between the two countries.
“I wish to convey my profound thanks to President Trump @realDonaldTrump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night,” he said in a social media post.
“This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come.”
