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Bulls continued to dominate the trade floor for a third consecutive day on Wednesday as shares at Pakistan Stock Exchange (PSX) crossed the 86,000 milestone.
Yousuf M Farooq, director research at Chase Securities, said, “The market is rerating upwards on the back of lower yields on fixed income instruments with a lot of interest in oil and gas companies”.
Last week, the government had rejected all bids for three-month treasury bills but raised money close to the target and much below the maturity amount at the auction. After a long gap, the rejection of all bills at the Sept 18 auction had also caused yields to fall substantially.
On the interest in oil and gas companies, Farooq noted that last quarter’s results showed that receivables were “no longer piling up” and circular debt was not accumulating.
Yesterday, stocks had rallied on news of a high-level Saudi delegation, led by Minister for Investment Khalid Bin Abdulaziz Al-Falih, set to visit Pakistan from Oct 9 (today) to October 11 to boost economic ties between the two countries.
The optimism had also been reflected in the increasing share prices of companies like Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO) and Pakistan Refinery Limited (PRL).
Yesterday, Prime Minister Shehbaz Sharif had also confirmed that the country was scheduled to sign agreements worth around $2 billion with the visiting Saudi delegation.
More to follow
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