The stock market rose on Monday as optimism over a potential United Arab Emirates (UAE) investment in the Fauji Foundation and a billion-dollar refinancing boosted risk appetite and drove the stock market to a new all-time intraday high.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed to an intraday high of 174,411.72, gaining 2,010.99 points, or 1.17 percent, and recorded a low of 173,200.41, reflecting a gain of 799.68 points, or 0.46 percent.
“Bullish activity is being seen as investors eye the end of the UAE’s $1 billion rollover liability, by acquiring a stake in Fauji Foundation,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
“Government deliberation on the privatization of public companies in difficulty [state-owned enterprises]”, stable rupee and rise in global crude oil prices played a catalytic role in the bullish activity of the PSX,” he added.
Deputy Prime Minister and Minister of Foreign Affairs Senator Mohammad Ishaq Dar said on Saturday that the UAE was set to acquire shares in the Fauji Foundation as part of the ongoing economic cooperation, adding that the transaction was expected to help settle a $1 billion liability while an additional $2 billion loan could be rolled over.
He said the deal followed the visit of the UAE President and expressed hope that the acquisition of the shares would be finalized by March 31, 2026; Islamabad is also seeking to convince the United Arab Emirates to reinvest the $2 billion planned in January.
“Ishaq Dar’s recent comment on the UAE’s potential acquisition of Fauji Group shares has triggered a rally in Fauji Group companies, driving the market mostly higher today,” said independent economic and investment analyst AAH Soomro. He added: “General optimism persists. »
On Friday, the benchmark KSE-100 index closed up 1,570.51 points, or 0.92 percent, at 172,400.73 from 170,830.22, after trading between a high of 172,582.96 and a low of 171,146.14.
