Pakistan Stock Exchange Hits All-Time High During SCO Summit
Shares at the Pakistan Stock Exchange (PSX) reached a new all-time high in intraday trading on Wednesday, coinciding with the highly anticipated Shanghai Cooperation Organisation (SCO) summit.
The benchmark KSE-100 index surged by 510.10 points, or 0.59%, climbing to 86,350.44 points from the previous close of 85,840.34 points by noon.
Awais Ashraf, director of research at AKD Securities, attributed the market’s optimism to expectations of positive outcomes from Pakistan’s hosting of the SCO summit and potential investment commitments from the Chinese Premier’s visit.
Pakistan became a full member of the SCO at its 2017 summit in Kazakhstan, which was attended by former Prime Minister Nawaz Sharif, who recently expressed hope for improved relations with India.
The SCO includes China, India, Russia, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Belarus, with an additional 16 countries participating as observers or “dialogue partners.” The organization addresses a range of issues, including trade, counterterrorism, and infrastructure development. For Pakistan, this summit presents a significant diplomatic opportunity during a critical period of regional and global realignments.
Ashraf also noted increased investor interest in companies benefiting from the resolution of circular debt in the power sector, following recent tariff adjustments.
Moreover, he mentioned that expectations of a further decline in fixed-income yields during today’s Treasury Bill auction, due to a smaller debt-raising target compared to upcoming maturities, are also boosting positive market sentiment.
Stocks had rallied the previous day, driven by blue-chip companies as investors considered strong earnings prospects and diplomatic gains from the SCO summit, especially after the PTI called off its protests.
