Stocks soar 958 points on Saudi investment prospects

The key measure of stock prices surged on Monday to cross the psychological barrier of 48,000 points as investors reacted positively to the prospect of Saudi money flowing into Pakistan’s mineral and energy sectors. Topline Securities Ltd CEO Mohammed Sohail said the expectation of investment from Saudi Arabia and the United Arab Emirates along with the Pakistan Mineral Summit, scheduled to be held on Aug 1, helped build investors’ confidence. As a result, the KSE-100 index settled at 48,034.60 points, up 957.60 points or 2.03 per cent from the preceding session. According to data compiled by Arif Habib Ltd, the KSE-100 index posted the highest return — points-wise — in July. The benchmark gained 6,582 points or 15.9pc on a month-on-month basis to surge past the 48,000 level, a threshold it crossed after two years. The rally began at the end of June when the country reached a staff-level agreement with the International Monetary Fund (IMF) for a $3 billion Stand-By Arrangement. “Better than expected IMF loan, timely compliance with IMF conditions, expected foreign investment from the Gulf countries and clarity on the upcoming elections have revived interest in Pakistan equities,” said Topline Securities in a strategy paper released on Monday.