Daily Times

Pakistan Stock Exchange (PSX) benchmark KSE-100 index has surged past 43,700 mark after almost two years and 5 months, as investors reacted to series of positive news flow on Tuesday. Bullish sentiments are ruling the roost at KSE-100, as the index gained as much as 443.49 points to touch its intra- day high at 43,709 index level so far.

The rally is being witnessed across the mainboard stocks, as international crude oil prices contributed positively to the Exploration & Production stocks, as did the fertilizer sector to the benchmark index. The cement and steel sectors are also contributing positively to the potential of opening up of economy, as investors’ sentiments were lifted after Prime Minister Imran Khan’s National Task Force on Science and Technology Chairperson Dr Atta-ur-Rehman, said coronavirus vaccine will be available in Pakistan in the next two months.

The market investors are also reacting to the developments on the political front. The much hyped political noise was dampened after opposition alliance led by 11 political parties under the umbrella of Pakistan Democratic Movement (PDM) failed to show an impressive power show on the weekend. The abysmal power show by the opposition alliance sent a sense of certainty among the investors, who were on the edge ever since the opposition alliance kick started mass movement against the government.

On the economic front, the market is also accounting for increase in workers’ remittances, which have crossed the $2-billion mark for the sixth consecutive month in November. Workers’ remittances increased 28.4 percent year-on-year to $2.34 billion in November 2020, pushing the cumulative flows to $11.8 billion during the July-November FY21, with a rise of 26.9pc compared to same period last year.

Investors’ sentiments are also buoyed by China’s decision to bail out Pakistan as it has agreed to immediately provide $1.5 billion financing line to repay the $2 billion Saudi Arabia debt. According to media reports, out of $2 billion, Pakistan was set to return the $1 billion on Monday, while the remaining $1 billion is due in January.