Pakistan Stock Exchange crosses record 60,000 benchmark

By Aamir Latif

KARACHI, Pakistan (AA) – The Pakistan Stock Exchange (PSX) on Tuesday crossed a record-high 60,000 benchmark ahead of next month’s expected release of the second tranche of an International Monetary Fund $3 billion bailout package.

The PSX continued its week-long bullish run, logging a further 564.50 points, or 0.94% increase in the KSE-100 index’s trade volume from the previous close of 59,811.34 on Monday.

The KSE-100 index has gained 50% in the last five months alone, making a jump from 40,000 to 60,000, the fastest such rise since 2004.

Analysts cite low valuations coupled with foreign buying and the successful conclusion of talks with the IMF as key factors behind the record rally.

Mohammed Sohail, a Karachi-based economist, said that the sustained positive streak has boosted investors’ confidence amid expected stability of the local currency and low interest rates.

Samiullah Tariq, head of research at Pak-Kuwait Investment, told Anadolu that attractive valuations, the “quick” IMF review, expectations of a rate cut, and foreign inflows have propelled the market.

Pakistan is set to receive the second tranche worth $710 million early next month following a much-needed guarantee from the United Arab Emirates to assist cash-strapped Islamabad in bridging its financial gap

Pakistan and the IMF reached a $3 billion standby agreement this June to help shore up the South Asian country's depleting foreign reserves and contain a mounting balance of payment crisis.

Pakistan got the first tranche of $1.2 billion from the IMF in July.