Positive investor sentiment led to a surge of over 300 points at the Pakistan Stock Exchange (PSX) on Wednesday as the bulls took charge, according to the PSX website. The benchmark KSE-100 index rose by 512.78 points, marking a 0.8% increase, settling at 64,967.0 compared to the previous close of 64,454.22.
Despite a marginal retraction, the PSX closed at 64,822.43, showing a gain of 368.21 points or 0.57% from the previous close. Analysts attribute this upward trajectory to positive expectations regarding measures to address economic and circular debt issues by the Special Investment Facilitation Council (SIFC).
Investor enthusiasm, particularly in oil and gas sectors, is cited as a key factor contributing to the bullish trend. Additionally, high-quality cement and technology stocks are experiencing renewed buying interest after a correction.
Analysts highlight the bullish trajectory’s connection to reports about the settlement of circular debt. The resolution of circular debt is expected to yield significant dividends for companies such as Pakistani Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), and Pakistan State Oil (PSO) if the deal is executed. However, they note that the finalization of the deal is contingent on approval from the finance ministry and the International Monetary Fund (IMF).
