Friday, the Pakistan Stock Exchange (PSX) reached a record level following the United States’s decision to reduce import prices on Pakistani products, stimulate investors’ feeling and indicate positive change in bilateral trade relations.
The PSX benchmark KSE-100 index settled at 141,034.98 points, up 1644.56 points, or 1.18%, compared to the previous fence of 139,390.42.
The index climbed to an intra -day summit of 141,160.93, winning 1,770.51 points, while receiving a minimum of 138,957.70, down 432.72 points.
Last night, revised prices were announced by the United States government, in which Pakistan will now face reciprocal prices of 19%compared to the previous rate of 29%, which reduces the impact by around 10%.
“We believe that this agreement will be neutral for Pakistan and will help [the] The country remains competitive with direct competitors, but no significant advantage on peers, “said Topline Securities in a note.
Pakistan welcomed the American trade agreement on Thursday, as a breakthrough that would improve investment flows and strategic cooperation.
The agreement follows months of negotiations that started in April. President Trump, in remarks made Wednesday, also said that the United States would join Pakistan to explore the “massive oil reserves in the country.
Pakistan Cnergyico’s biggest refinee is expected to import 1 million barrels of Vitol oil in October, said its vice-president of Usama Qureshi on Friday, marking the very first purchase of the American crude crude after the trade agreement.
Meanwhile, another reason for the market rally was the State Bank of Pakistan (SBP) holding its 11% key policy for a second consecutive meeting earlier this week, defying market expectations of another rate drop.
In its policy statement, the SBP has cited risks of high inflation due to higher energy prices adjustments, especially in gas prices. However, he said that inflation was still to stabilize in the target beach in the future.
