Islamabad: Pakistan Stock Exchange (PSX) soared to a record high on Friday, with the benchmark KSE-100 Index closing at an all-time high of 141,035 points after gaining 1,644 points. This surge in the market was largely attributed to the announcement of a significant trade deal between Pakistan and the United States, which has sparked investor optimism.
The deal, hailed as a ‘landmark’ agreement, will see Pakistan benefit from a reduction in tariffs. Under the new terms, Pakistan will now face reciprocal tariffs of 19% on its exports to the US, down from the previous rate of 29%.
This reduction in trade barriers is expected to boost Pakistan’s exports and improve economic conditions, providing a much-needed boost to investor sentiment.
In addition to the positive trade news, another factor that contributed to the bullish trend in the stock market was the expectation that the government would take action to address Pakistan’s circular debt issue.
Reports have indicated that the government plans to clear the circular debt by securing Rs.1.25 trillion from local banks in the coming weeks. This move is anticipated to ease liquidity concerns in the energy sector and improve the overall economic outlook, further fueling market optimism.
On Friday, a total of 609,708,910 shares were traded on the PSX, an increase compared to the 577,348,593 shares traded on the previous day. The value of shares traded also saw a significant rise, reaching Rs.50.552 billion, up from Rs.36.348 billion in the last trading session.
A total of 483 companies participated in the trading activity, with 199 companies recording gains, 246 companies experiencing losses, and 38 companies seeing no change in their share prices.
The overall positive sentiment in the market reflects investor confidence in Pakistan’s economic prospects, driven by the combination of the trade deal and circular debt resolution efforts.
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