Shares at PSX climb 700 points to reach new high

Bulls retained their control at the Pakistan Stock Exchange (PSX) as shares surged more than 700 points on Tuesday.
The benchmark KSE-100 index climbed 799.33, or 0.94 per cent, to stand at 85,709.62 points from the previous close of 84,910.29 points. Finally, the index closed at 85,663.97 points, up by 753.68 points or 0.89pc, from the previous close of 84,910.29.
Mohammed Sohail, chief executive of Topline Securities, said that “continous buying from local and foreign funds” was helping the market reach new highs.
“Despite this, Pakistan market is trading at PE [price-to-earning] of 4 times which is still attractive amid economic stability and falling inflation,” he added.
Awais Ashraf, director research at AKD Securities, said investors were “optimistic about the positive outcomes expected from the upcoming visit of a high-level Saudi delegation, with hopes that Saudi Arabia will invest in the energy, mining, and agriculture sectors”.
Furthermore, he added this optimism was already reflected in the increasing share prices of companies like Oil and Gas Development Company, Pakistan Petroleum Limited, Pakistan State Oil and Pakistan Refinery Limited.
Yesterday, the Foreign Office (FO) confirmed that a high-level Saudi delegation, led by Minister for Investment Khalid Bin Abdulaziz Al-Falih, is set to visit Pakistan from Oct 9 to 11 to boost economic ties between the two countries.
The Saudi delegation is expected to include representatives from both government agencies and the private sector, signalling a broadening of Pakistan-Saudi economic partnerships.
“Additionally, stocks with high dividend yields continue to perform well as fixed income yields decline,” Ashraf added, recommending “that investors focus on stocks poised to benefit from structural reforms and monetary easing”.
Yousuf M Farooq, director research at Chase Securities, attributed the climb to falling bond yields impacting sentiment in the stock market.