KARACHI: The Pakistan Stock Exchange (PSX) breached the 135,000 points barrier on Monday to reach an all-time high during intraday trading, with financial analysts attributing the surge to investors’ continued preference of equities over fixed income assets.
The KSE-100 Index reached 135,723.53 points during intraday trading, gaining 1423.77 points or by 1.06 percent from its last close of 134,299.76 points on Friday. Karachi-based brokerage company Topline Securities had attributed the surge to consistent inflows from mutual funds last week, saying investors were continuing to shift from fixed income assets to equity funds.
“The stocks are hitting new highs as investors continue to switch from fixed income asset class to equities,” Shahid Ali Habib, chief executive officer at Arif Habib Limited, told Arab News.
Habib said investors were turning to equities as fixed income yields were low, adding that investors are “continuously getting confidence that it will continue to remain low for next year too.”
“More liquidity is coming and the investors are trying to identify new alpha stocks,” the analysts noted.
State broadcaster Radio Pakistan credited the government’s economic policies for the bullish trend at the stock market.
“The continued upward trend in the stock exchange reflects the increasing confidence of the trade and business community on economic policies introduced by the government,” Radio Pakistan reported.
In a statement, Prime Minister Shehbaz Sharif expressed happiness over the surge in the stock market.
“Providing a business-friendly environment in the country is our top priority,” the Pakistani premier said.
Sharif said Pakistan had now embarked on the path to economic growth, saying the government is working tirelessly for national development and the public’s welfare.