As shares increased by more than 500 points during intraday trading on Wednesday at the Pakistan Stock Exchange (PSX), bulls ruled the floor. Analysts attributed the gains to “good progress” made in the privatization of Pakistan International Airlines (PIA).
The board of PIA Holding Company was approved by the federal cabinet on Tuesday. Tariq Bajwa, a former governor of State Bank, was chosen as the company’s chairman.
Since the national carrier’s assets and liabilities would be transferred to the holding company, which will register with the Securities and Exchange Commission of Pakistan, the action was heralded as a significant breakthrough in the carrier’s privatization process. There will be four government representatives and seven independent directors on the board.
The benchmark KSE-100 index increased by 520.58 points, or 0.79 percent, from its previous close of 65,906.27 points to 66,426.85 points at 11:14 a.m. today.
Topline Securities CEO Mohammed Sohail stated that the market was feeling better due to “good progress” made in the privatization of the national carrier and a “likely new deal with the International Monetary Fund (IMF)”.
He emphasized that the benchmark index was reaching its all-time high of 66,427 points, which was recorded in December, once more.
Furthermore, he stated that data from the National Clearing Company of Pakistan Limited (NCCPL) indicated that foreign fund purchases further supported share prices “which are trading at an attractive price-to-earning ratio of less than four.”
He claimed that the nation’s market was currently the best-performing one, having seen the most growth over the previous six months.
