PSX maintains bullish streak, crosses 58,000 milestone
The benchmark index of the Pakistan Stock Exchange (PSX) on Wednesday surged over 700 points during intraday trade and surpassed the 58,000-level.
According to the PSX website, KSE-100 index was trading at 58,129.92 points at 12:40pm, up 758.34 or 1.46 per cent from the previous close of 57,371.58 points.
Last week, the benchmark of representative shares hit an all-time high and crossed 57,000 points on the back of the staff-level agreement reached between Pakistan and the International Monetary Fund (IMF).
Speaking to Dawn.com today, Arif Habib Ltd analyst Ahsan Mehanti highlighted that stocks achieved a new all-time high, driven by substantial trades following the recovery of the rupee.
He emphasised the positive data indicating a significant reduction in the current account deficit to $74 million in Oct ’23, marking a 91 per cent YoY decrease.
Mehanti mentioned the forthcoming IMF board approval for the tranche on Dec 7, opening the way for a $700 million disbursement next month.
He attributed the record close to the IMF’s completion of the first quarterly review under the SBA, successful compliance with most quantitative targets, and reports of rising prices of dollar-denominated government bonds.
Alpha Beta Core CEO Khurram Shehzad said that a crucial factor driving the upward trajectory was the anticipation of a rate cut, given the expected slowdown in inflation over the next few months.
He also noted that clarity on upcoming elections and the IMF staff-level agreement was also contributing to this positive trend.
Talking to Dawn.com, Topline Securities Ltd CEO Mohammed Sohail noted that although the index had reached 58,000, prices were still relatively low.
He remarked, “From a market cap of $20 billion to now approaching $30 billion, this marks one of the fastest, albeit expected, recoveries at the Pakistan Stock Exchange.”
Sohail said that the recovery had only just begun, with the market’s price-to-earnings ratio still at unbelievably low levels, hovering around 3-4 times.