Saudi investment leads to PSX buoyancy

The conventional norms of reasoning often fall short of explaining the shifts in today’s world, especially in Pakistan. The visible spike in investor confidence at this point is puzzling, considering the economic challenges and terrorist threats the country is facing. Moreover, the fact that the current government’s term is ending this week adds further complexity to the situation. The investor’s sentiments turned bullish over the past few weeks, expressed in the booming capital market. Pakistan benchmark stock market (PSX) index rose vertically. It was at 41,000 level five weeks back. It crossed the 49,000 mark last week, gaining by 20 per cent. Marketers, when approached for input, counted several factors that contributed to positive market sentiments. After the International Monetary Fund deal, they believed the $10 billion Saudi refinery deal was the key driver that boosted business confidence. “The fact that the said contract was instantly marked and analysed globally is a testament to the potential it holds for Pakistan and its partners. A project of this scale in the energy sector has consequences that sometimes extend beyond economics,” commented an analyst hinting at the changing contours of energy politics post the Saudi Iran détente.