PSX 100-index hits all-time high buoyed by renewed investor confidence

KARACHI: Pakistan Stock Exchange 100-index crossed the highest ever 40,000 points benchmark on Friday, as local and foreign investors asserted their confidence in the Pakistan stock market.

The 100-index made history as it hit an all-time high of 40,012 points at the start of trading today.

According to economic analyst Muzammil Aslam, increased buying of companies’ shares by local and foreign investors has been observed following better-than-expected results announced by the companies in recent days.

Aslam said that the MSCI’s decision to upgrade Pakistan from the frontier to emerging market status has also renewed investor confidence in the country’s stock market. The US-based global index provider had announced on June 15 that Pakistan Index would be reclassified to the emerging market status, spurring increased foreign investment in the country’s stocks.

China-Pakistan Economic Corridor plans have also boosted confidence of investors.

On Thursday, Pakistan stocks edged up to a fresh record closing high led by banking stocks, dealers said.

The benchmark 100-share index of the Pakistan Stock Exchange closed 0.14 percent higher, or 55.72 points, at 39,861.60. "Bankings stocks performed on the day, which led the market to close at an all-time high," said Hammad Aman, manager, equity sales at Topline Securities Pvt Ltd.

United Bank Ltd gained 3.90 percent, Habib Bank Ltd increased by 0.35 percent and Habib Metropolitan Bank Ltd rose 1.67 percent.

The rupee ended stronger at 104.52/104.59 against the dollar, compared with Tuesday´s close of 104.57/104.61. Overnight rates in the money market fell to 5.85 percent from Tuesday´s close of 5.90 percent.