The bulls remained in control at the Pakistan Stock Exchange (PSX) as shares surged over 700 points on Tuesday. The benchmark KSE-100 index rose by 0.94%, reaching 85,709.62 points, reflecting positive sentiment in the market.
Market analysts attribute this uptrend to continuous buying from local and foreign funds, driving the market to new highs. Despite this, the Pakistan market remains attractive with a PE ratio of 4 times amid economic stability and falling inflation.
Investors are optimistic about the upcoming visit of a high-level Saudi delegation, expecting investments in energy, mining, and agriculture sectors. This anticipation has led to increased share prices of companies such as Oil and Gas Development Company and Pakistan Petroleum Limited.
The visit of the Saudi delegation aims to strengthen economic ties between the two countries, with representatives from both government agencies and the private sector. Stocks with high dividend yields are also performing well as fixed income yields decline.
Analysts advise investors to focus on stocks poised to benefit from structural reforms and monetary easing, as falling bond yields continue to impact sentiment in the stock market.