Stocks hit record high amid privatisation buzz

Pakistan Stock Exchange (PSX) rallied to a new all-time high at 93,648 points, driven by blue-chip stocks, as investor optimism grew over news of impending privatisation of state-owned enterprises (SOEs) and foreign interest triggered by the revised MSCI index weight for Pakistan.

A stable rupee and declining bank lending rates, following a drop in government bond yields, further spurred buying activity.

“Stocks reached a new all-time high, led by blue chips, on the IMF’s calls for privatisation of SOEs and expected foreign interest after revision in the MSCI standard index weight to 4.4%,” said Ahsan Mehanti, Managing Director of Arif Habib Corp.

Rupee stability and the falling bank lending rates following a slump in government’s bond yields played the role of catalysts in bullish activity at the PSX, he added.

At the close of trading, the benchmark KSE-100 index recorded an increase of 356.64 points, or 0.38%, to 93,648.33.

Topline Securities wrote in its review that the market showed a positive momentum, with the KSE-100 index reaching the peak of 94,020 and dipping to the low of 93,319, as investors took a directional stance, driven by lower valuations in the pharmaceutical sector.

The index was lifted by positive contributions from Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Abbott Laboratories, The Searle Company and GlaxoSmithKline, which collectively added 399 points.