The stock market rose on Monday as optimism over a potential investment in the United Arab Emirates (UAE) Fauji Foundation, with a settlement of 1 billion. USD, increased risk appetite and drove the stock market to a new intraday record.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed to an intraday high of 174,411.72, up 2,010.99 points or 1.17% and recorded a low of 173,200.41, reflecting a gain of 799.68 points or 0%.
“Bullish activity is being witnessed as investors look at the UAE $1 billion rollover commitment to end, and acquire stake in Fauji Foundation,” said Ahsan Mehanti, managing director and CEO of Arif Habib Commodities.
“Government negotiations on the privatization of crisis-hit state-owned enterprises [state-owned enterprises]rupee stability and rising global crude oil prices played a catalyst role in bullish activity at PSX,” he added.
Deputy Prime Minister and Minister of Foreign Affairs Senator Mohammad Ishaq Dar said on Saturday that the UAE is set to acquire shares in the Fauji Foundation as part of the ongoing economic cooperation, adding that the transaction is expected to help settle a liability of 1 billion. $, while an additional loan of 2 billion
He said the understanding followed the visit of the UAE President and expressed hope that the share purchase would be completed by March 31, 2026; Islamabad is also seeking to persuade the United Arab Emirates to reinvest $2 billion due in January.
“The recent comment by Ishaq Dar on UAE’s potential acquisition of Fauji Group shares has sparked a rally in Fauji Group companies, primarily driving the market higher today,” said independent investment and financial analyst AAH Soomro. He further added: “General bullishness continues.”
On Friday, the benchmark KSE-100 index closed higher by 1,570.51 points, or 0.92%, at 172,400.73 from 170,830.22, after trading between a high of 172,582.96 and a low of 171,146.14.
