Caretaker Prime Minister Anwaarul Haq Kakar on Friday commended the collective efforts of all stakeholders in steering the economy back on track.
Speaking at the Pakistan Stock Exchange during the first auction of the Government Ijarah Sukuk Bond, he acknowledged the regained investor confidence, attributing it to the successful standby agreement with the International Monetary Fund, the execution of the annual budget 2023-24, and improvements in fiscal and external accounts.
Congratulating all stakeholders on the auction of bond through PSX, the prime minister praised the current performance of the PSX, emphasising its crucial role in the national economy. Despite initial challenges in 2023-2024, the government addressed structural and macroeconomic issues, resulting in a positive impact on the stock exchange.
Kakar emphasised that the bullish sentiment in the stock exchange was facilitated by an improved economy, foreign investor participation, a high yield, and a stable exchange rate. He reiterated the government’s commitment to nurturing the resilience of the capital market, recognizing its stabilising role and ability to absorb shocks.
During the ceremony, finance minister Shamshad Akhtar welcomed Kakar to launch the Government Sukuk Auction through the PSX. She highlighted the significance of Ijarah Sukuk as a groundbreaking and innovative product beyond the State Bank’s traditional control over government securities.
The premier, symbolically ringing the gong of the stock exchange, expressed that it not only signalled market transactions but also represented an epitome of progress and prosperity.
Meanwhile, the benchmark index of the Pakistan Stock Exchange maintained its upward momentum on Friday and crossed the 66,000 milestone, buoyed by declining oil prices and foreign buying.
According to the PSX website, the KSE-100 index closed at 66,223.63, up by 1,505.56 points, or 2.33 per cent, from the previous close of 64,718.07. Tahir Abbas, head of research at Arif Habib Limited, told Dawn.com that there was a “flush of domestic liquidity pouring into the market”.
He said Arif Habib analysts estimate that “for every 1pc conversion from fixed income to equities in the asset under management (AUMs) of Mutual funds and Insurance companies, Rs36bn would be deployed in the market”.
Mohammed Sohail, chief executive of Karachi-based brokerage firm Topline Securities, attributed today’s run to declining oil prices and continuous foreign buying.
He noted that investors had a new-found confidence in the direction of economic policies and were taking advantage of low valuations as the market, even with its gains, was trading at a cheap price-to-earning ratio.
