Pakistan’s benchmark share index finished 1.8% higher on Monday to set a third consecutive record-high close, which analyst said reflected market confidence in the country’s political and economic stability.

The index closed at 69,620 point after touching 69,720 earlier in the day, its all-time high, Pakistan Stock Exchange data showed.

Analysts said that political stability, following formation of government after national elections in February 2024 and Pakistan pursuing reforms agreed with the International Monetary Fund, were reassuring investors.

“The market is hitting new highs on the back of political stability, progress on privatisation, potential new deal with the Fund in June 2024, decline inflation, and expectations of a 500-700 basis points cut in 2024,” said Chief Investment Officer at FRIM Ventures, Shahbaz Ashraf.

He also said the market still had room got go higher

Following Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, Pakistan’s foreign ministry issued a statement on Monday saying that both countries affirmed their commitment to expedite the first wave of a $5 billion investment package they have been discussing.