ISLAMABAD: On Tuesday, the Pakistan Stock Exchange (PSX) saw a significant milestone as its benchmark KSE-100 Index surpassed the historic 70,000-point threshold for the very first time.
This achievement is attributed to advancements in the privatization program and a surge in foreign investment, bolstering the bullish trend in the market.
The market kicked off with vigor, witnessing a robust opening session with a gain of 570 points.
Notably, the PSX has never before breached the 70,000-point mark in its history, marking this as a noteworthy development.
This milestone follows closely on the heels of the market’s recent breakthrough, crossing the 69,000-point mark just the day before.
Experts foresee a continuation of the bullish trend, buoyed by factors such as political stability and the ongoing privatization program.
Meanwhile, the Board of Directors (BoD) of the International Finance Corporation (IFC), a member of the World Bank Group, has greenlit debt financing of up to $400 million for Pakistan Telecommunication Company Limited (PTCL) to facilitate its acquisition of Telenor Pakistan (Private) Limited.
PTCL announced this development in a notice sent to the Pakistan Stock Exchange (PSX) on Monday, revealing, “The Board of Directors of the International Finance Corporation (IFC) has approved the debt financing up to $400 million to PTCL for the acquisition of Telenor Pakistan.”
The company disclosed that the finalization of workstreams to formalize financing agreements with IFC is currently underway and is anticipated to conclude on or before July 31, 2024. “The details of the debt financing shall be disclosed upon the finalization of financing agreements,” it stated.
Following the announcement, PTCL’s share price surged to Rs17.12, marking a 5.74% increase at the time of reporting.
Last year, in a significant consolidation move within the telecom sector, PTCL inked a Share Purchase Agreement (SPA) with Telenor Pakistan’s shareholders, acquiring 100% of the shares for Rs108 billion ($385 million) on a cash-free, debt-free basis.
“The transaction offers an opportunity for in-market consolidation in the telecom sector, which is expected to enhance the long-term outlook of the industry,” PTCL stated in a previous announcement. “It will also bolster the capabilities of the combined entities, leading to improved service coverage and quality for customers, facilitating broader access to communication solutions for businesses, and supporting Pakistan’s economic growth.”
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