Shares at PSX climb 500 points in intraday trade
Bulls dominated the trading floor of the Pakistan Stock Exchange (PSX) on Wednesday as shares gained over 500 points in intraday trade, with analysts attributing the gains to “good progress” made regarding the privatisation of Pakistan International Airlines (PIA).
On Tuesday, the federal cabinet approved the board of PIA Holding Company, with former State Bank governor Tariq Bajwa being appointed as its chairman.
The move was hailed as a significant development in the national carrier’s privatisation process as its liabilities and assets will be transferred to the holding company, which will be registered with the Securities and Exchange Commission of Pakistan. The board will include seven independent directors and four government officials.
Today, the benchmark KSE-100 index gained 520.58 points, or 0.79 per cent, to stand at 66,426.85 points at 11:14am from the previous close of 65,906.27.
Mohammed Sohail, chief executive of Topline Securities, said “good progress” made regarding the privatisation of the national carrier and a “likely new deal with the International Monetary Fund (IMF)” was helping market sentiment.
He highlighted that the benchmark index was once again closing in on the all-time high number of 66,427 points, which was seen in December.
Moreover, he said that foreign fund buying — as shown by National Clearing Company of Pakistan Limited (NCCPL) data — also supported share prices “which are trading at an attractive price-to-earning ratio of less than four”.
He said that currently the country’s market was the best performing market with the highest gains in last six months.
More to follow