Shares at PSX create all-time high again as SCO summit underway

Shares at the Pakistan Stock Exchange (PSX) created another all-time high in intraday trade on Wednesday during the highly anticipated Shanghai Cooperation Organisation (SCO) summit.

The benchmark KSE-100 index climbed 510.10 points, 0.59 per cent, to stand at 86,350.44 points from the previous close of 85,840.34 points 12pm.

Awais Ashraf, director research at AKD Securities, said, “Investors are optimistic about positive outcomes from Pakistan’s hosting of the ongoing Shanghai Cooperation Organisation (SCO) summit and additional investment commitments from [the] Chinese Premier visit.”

Pakistan became a full member of the SCO at its 2017 summit in Kazakhstan, which was attended by ex-PM Nawaz Sharif, who recently also expressed hope for reviving ties with India.

The SCO comprises China, India, Russia, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Belarus — with 16 more countries affiliated as observers or “dialogue partners”.

The organisation has evolved to address issues ranging from trade and counterterrorism to infrastructure development. For Pakistan, this meeting represents a unique diplomatic opportunity — one that comes at a pivotal moment in regional and global realignments.

Additionally, Ashraf noted that there was renewed interest from investors in companies benefitting from the circular debt resolution after the cost-based tariff curtailments in the power sector.

“The expectation of further fall in the fixed income yields in today’s T-Bill auction due to a smaller debt-raising target compared to upcoming maturities is also contributing to the positive market sentiment,” he added.

Stocks had rallied yesterday due to blue-chip scrips as inv­estors weighed strong earnings outlook and diploma­tic gains in the SCO summit after PTI had called off protests.

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