ISLAMABAD: The Pakistan Stock Exchange (PSX) continued its momentum and gained 1,590 to breach the 163,000-point mark for the first time ever, with market analysts saying aggressive institutional buying was behind the bullish trend.
The benchmark KSE-100 index rose by 0.98 percent to close at 163,847 points as compared to the weekend close of 162,257 points, according to the PSX website.
Maaz Mulla, vice president for equity sales at Karachi-based Topline Securities, said the rally was largely driven by aggressive buying from local mutual funds.
“NCCPL (National Clearing Company of Pakistan Limited) data shows that mutual funds were hefty net buyers on Friday and the momentum carried through to today’s session, giving the market a solid lift,” he said.
The market gained nearly 3,000 points to close the week at an all-time high on Friday as warming United States-Pakistan relations and hopes of an International Monetary Fund (IMF) loan tranche release boosted investor confidence.
Ties have improved between the US and Pakistan as Washington’s relationship with New Delhi has soured over India’s increased purchases of discounted Russian oil amid Ukraine war. President Donald Trump this year raised tariffs on India for those oil purchases, while the US and Pakistan reached a landmark trade deal in July to allow Washington to help develop Pakistan’s largely untapped oil reserves and lower tariffs for Islamabad.
Separately, an IMF mission is currently holding talks with Pakistani officials for the second review of Islamabad’s $7 billion External Fund Facility (EFF) and first review of the $1.4 billion Resilience and Sustainability Facility (RSF) programs.
But despite the positive, the Pakistani stock market slightly slowed down on Monday as compared to the previous session, with volumes recorded at 1,282 million shares and traded value climbing to Rs65.7 billion ($231 million).
“Institutional inflows and improved sentiment ensured the bulls stayed firmly in command, pushing the market higher into new territory,” he said.
