After a year’s break, the Bulls push the KSE-100 beyond the 45,000
- Market gains over 500 points, closes at 45,155.79 points.
- Stocks jump past 45,000 mark first time in 15 months after Pakistan received $2bn from Saudi Arabia.
- Analyst says market would witness rise in points throughout week.
KARACHI: Stocks on the Pakistan Stock Exchange (PSX) surged beyond 45,000 for the first time in 15 months on Tuesday, after the cash-strapped country received $2 billion from Saudi Arabia.
The index completed the day at 570.67, or 1.28% higher, at 45,155.79 points, up from the previous closing of 44,585.12 points.
According to Arif Habib Limited, the market has gained 3,703 points, or 8.9%, since the staff-level agreement with the International Monetary Fund (IMF) for a $3 billion Stand-By Arrangement (SBA).
Fitch also improved Pakistan’s long-term foreign currency issuer default rating to CCC from CCC- on Monday, a hopeful sign for a country in the grip of its worst economic crisis.
“Market optimism has been reinforced by news of Saudi money, Fitch credit rating upgrade, and lack of any hindrance in the IMF talks with political parties last weekend,” capital market specialist Saad Ali told Geo.tv.
The analyst also predicted that the market will gain points over the week.
The rating agency said in a statement that the upgrading reflected the country’s better external liquidity and funding circumstances as a result of a staff-level agreement with the International Monetary Fund (IMF), but noted that the fiscal deficit remained large.
