Saudi Delegation Spurs Record High for Pakistan’s KSE-100 Index

Pakistan’s KSE-100 index soared to a record high on Monday, closing with a 1.2% gain. The surge followed the arrival of a high-profile investment delegation from Saudi Arabia, signalling potential new investments in the country. The KSE-100 index reached an intraday high of 1,158.65 points, a 1.61% increase, before closing at 72,764.24 points, fueled by optimism over the Saudi delegation’s visit.

The delegation, led by Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak, comprises 50 members from 30 leading Saudi companies representing a wide range of industries, including IT, telecom, energy, aviation, construction, mining, agriculture, and human resources.

Analysts cited the delegation’s arrival as the key driver behind the market’s bullish trend. “Today’s all the bullish activity was because of the Saudi delegation visiting Pakistan to explore investment opportunities,” explained Sheheryar Butt, portfolio manager at Darson Securities.

Al-Mubarak’s positive comments during an investment summit in Islamabad on Monday further buoyed investor sentiment. He stated that Pakistan was a “high priority” economic opportunity, pointing to the country’s demographic potential, strategic location, and abundant natural resources.

Pakistan’s Finance Minister Muhammad Aurangzeb also addressed the summit, emphasising the importance of foreign investment for Pakistan’s macroeconomic stability. He highlighted Prime Minister Shehbaz Sharif’s recent visit to Saudi Arabia as paving the way for increased economic cooperation between the two countries.

“The visit of a delegation of Saudi investors to Pakistan is also part of paving the way for this economic cooperation,” Aurangzeb said. He added that the government is working on privatisation, with Pakistan International Airlines (PIA) among the enterprises set to be privatised.

Ali Nawaz, CEO of Chase Securities, attributed the bullish trend in the stock market to the Saudi investment delegation’s visit, indicating that it injected optimism into the market and suggested the potential for increased foreign investment. A recent decline in inflation also contributed to the positive sentiment, with Nawaz noting that lower inflation rates generally indicate a healthier economic environment and could suggest future interest rate cuts.

Overall, the convergence of the Saudi delegation’s visit and a drop in inflation has invigorated Pakistan’s stock market, sparking renewed confidence among investors and raising expectations for economic growth and stability.