The stock market surged at the opening of Wednesday’s session, snapping a two-day losing streak, fuelled by an upward correction.
The capital market kicked off Wednesday’s session on a positive note, rebounding after two consecutive sessions of losses, driven by an upwards correction.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index gained 1,697.54 points, or 1.46%, to reach an intraday high of 117,750.22 points.
“The initial bounce can be attributed to an upwards correction from yesterday’s 2,500-point drop and a recovery in energy stocks,” Ismail Iqbal Securities CEO Ahfaz Mustafa told Geo.tv.
Another reason for the optimism in the market was Prime Minister Shehbaz Sharif’s expected visit to the bourse as he is in the port city on a day’s visit. The premier is set to award PSX the title of the world’s second-best-performing stock exchange in 2024.
Also, during a cabinet meeting a day earlier, the premier announced the rollover of a $2 billion loan deposit from the United Arab Emirates, which offers fiscal relief to the government.
Head of Research at Pak-Kuwait Investment Company, Samiullah Tariq, told Geo.tv: “[The] market is rebounding as it had declined in the past two sessions. Also, [the] PM is also coming today to the stock exchange.”
Another factor contributing to the market’s rise is the government’s plan to rightsize 42 ministries and their 400 attached departments by June 30, 2025, to reduce expenditures and improve efficiency.
Finance Minister Muhammad Aurangzeb, speaking at a press conference on Tuesday, revealed: “We have decided to bring five or six departments under rightsizing in each phase.”
The minister revealed that 60% of vacant regular posts—totaling 150,000—have been abolished or declared as “dying posts,” creating a tangible financial impact.
The State Bank of Pakistan (SBP) reported that the government’s total debt increased by Rs1.452 trillion, or 2.1%, in the first five months of FY25, reaching Rs70.366 trillion as of November 2024. This rise is attributed to high government spending and external debt repayment needs.
Moreover, the State Bank of Pakistan (SBP) reported that the government’s total debt increased by Rs1.452 trillion, or 2.1%, in the first five months of FY25, reaching Rs70.366 trillion as of November 2024.
The KSE-100 Index ended Tuesday’s session at 116,052.68, marking a decline of 202.44 points, or 0.17%, from the previous session’s close of 116,255.12.
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