Pak stock exchange gets boost from Saudi aid, ends negative trend

Pakistan Stock Exchange gained nearly 1,500 points Wednesday after weeks of negative trend and points shedding, a day after Saudi Arabia pledged USD 6 billion bailout package to Islamabad.

In the deal announced Tuesday after Prime Minister Imran Khan called on Saudi King Salman bin Abdulaziz, Riyadh said it will give Pakistan USD 3 billion in foreign currency support for a year and a further loan worth up to USD 3 billion in deferred payments for oil imports.

The Karachi Stock Exchange-100 index gained 1500 points on Wednesday moving the benchmark to 1,556 points to reach 39,271 points at the close of trading.

Financial analysts said that Saudi Arabia bailout package had very positive outlook on the trading.

"The Saudi package has triggered the bullish trend," senior analyst Ahsan Mehnati said.

He noted that the market since the last few months had been driven by negative sentiments based on concerns regarding the imbalance of external payments.

Pakistan has also asked International Monetary Fund for a USD 12 billion bailout package.

Another analyst said the Saudi package had allowed the market to heave a sigh of relief after weeks of concern and unrest since the general elections in July.

"Now we see investors rushing to the market to buy shares mostly in the power generation. And distribution sector," he said.

"The good thing is that with the prime minister also due to visit China, Malaysia and other countries they are plenty of positive feeling in the market," said Nabeel Khursheed, another analyst currently associated with Topline Securities.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)