The Pakistan Stock Exchange (PSX) saw a significant gain on Wednesday, with the benchmark KSE-100 index surpassing the 80,000 mark due to increased investor interest in state-owned enterprises (SOEs).
The KSE-100 index reached 80,292.59 points during intraday trading, up by 739.71 points or 0.93% from the previous close of 79,552.89 points.
Raza Jafri, CEO of EFG Hermes Pakistan, told Geo.tv that the gain was driven by a surge in buying activity in SOEs such as the National Bank of Pakistan (NBP) and Oil and Gas Development Company (OGDC). This was in response to reports indicating a push for privatization, strategic stake sales, and addressing legacy issues.
“This comes amid increasing hopes of significant interest rate cuts in the second half of 2024 and timely entry into an International Monetary Fund (IMF) program,” he added.
Finance Minister Muhammad Aurangzeb noted that the government’s privatization plan spans two to three years and will be implemented accordingly, as the National Assembly passed the budget for FY25 last week.
Minister for Privatization Aleem Khan stated that the federal government intends to privatize around 24 SOEs in the coming years, with Pakistan International Airlines expected to be the first enterprise to be privatized.
Intermarket Securities Director of Research Saad Ali attributed the surge to optimism regarding the IMF program and the continuation of macroeconomic recovery following the smooth passage of the budget.
He remarked, “The market continues to re-rate from still low valuations and the prospect of lower interest rates in the future.”
The previous day, stocks closed significantly higher at 79,552.89 points amid expectations of better earnings in the half-year results from SOEs in the oil sector.
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