Shares at the Pakistan Stock Exchange (PSX) trended upward on Wednesday, with the benchmark KSE-100 index surging past 300 points. The index gained 323.03 points, or 0.69 per cent, closing at 47,079.83 points from the previous close of 46,756.80 points. The index as of 11:30am.-Screenshot courtesy PSX Meanwhile, the rupee has continued to improve against the dollar for the 20th consecutive session, gaining Rs1.04. By closing time, the US dollar stood at Rs284.68 in the interbank, according to State Bank of Pakistan. In the open market, the dollar depreciated by Rs1, trading for Rs285. 10pc tax on Afghan transit trade has helped: Ali Malik, chief executive of brokerage firm First National Equities, attributed the bullish behaviour to the “continuous and focused attention” the Special Investment Facilitation Council (SIFC) – a body comprising senior civil and military officials formed to attract foreign investment – was paying to the current economic woes. Moreover, Malik said, the rupee appreciation over the past few weeks has given investors “less to worry about”. “Secondly, the 10pc duty on Afghanistan transit trade is going to discourage any kind of smuggling which used to take place through Afghan transit,” he said. “Goods from outside used to come through Afghanistan to get sold in Pakistan. Now, smuggling will be discouraged which will further empower local industry,” he added. Malik said tax collection was “good now”, the parameters are satisfactory. “As investor confidence increases, so will the share price,” he added. Siddique Dalal, chief executive of Karachi-based brokerage firm Dalal Securities, noted the crackdown against smuggling, the recent rupee appreciation rally, the talk about stricter immigration laws and the SIFC receiving investments from Saudi Arabia to be major reasons for the upward trend in the index. However, he added: “Across the board is not that good. Banks are performing well today, yesterday it was cement. The volume is not there. “In addition, the World Bank projected a slumping GDP growth. Some things are not that good. However, it has hit the 47,000 mark, the main reason is rupee appreciation, crackdown, changes in immigration laws [and] curbing smuggling, so there is an increase in investor confidence.” ‘Banks doing well, but volume is still low’: Salman Naqvi, head of research at Aba Ali Habib Securities, said the main activity was in the banks due to them releasing their quarterly results which are expected to be positive, particularly in banks like Meezan Bank, United Bank Limited, and Muslim Commercial Bank. “Apart from this, there is a possibility of gas prices increasing so that’s why there is an increase in shares of PPL (Pakistan Petroleum Limited), OGDC (Oil and Gas Development Company) and Sui North. Furthermore, he said there is a likelihood that the dividends scheme sent to the IMF will be approved and therefore the power sector “will see some positive developments ahead”. Naqvi also credited the stock rally to the rupee appreciation, the Pakistani investment bond yield, and the current account deficit improvement. “However, volume is still low, there is a cautious approach to this.”