PSX breaches 78,000 barrier again over renewed optimism on budget, IMF deal

The Pakistan Stock Exchange (PSX) on Wednesday gained 335 points to close at 78,275 points, with analysts attributing the gain to expectations that the proposed budget would eventually be passed, which would then pave way for striking a deal with the International Monetary Fund (IMF).

Last week, the PSX crossed 80,000 points during intraday trade before closing at a sustained record high.

The index today gained 335.06 points or 0.43 per cent while reaching a high of 78,679.49 points in the day before closing at 78,275.64.

Chief executive of EFG Hermes Pakistan Raza Jafri told Dawn.com that it looked as if the budget presented by the foreign minister on June 12 would pass without “any hiccups” which should help Pakistan in securing another IMF program.

“The market is reacting positively to this,” he said, adding that with monetary easing also underway, investors were focusing on high dividend yield stocks that would continue to look attractive against fixed income as interest rate cuts picked pace.

Syed Faran Rizvi, head of equity sales at JS Global Capital, said: “The PSX responded positively to the budget, with the market reaching the 80,000 index mark last week.”

“However, investors expressed concerns about new tax impositions, particularly in the textile sector and among milk producers,” Rizvi said.

“Despite this, we maintain our belief that market multiples remain attractively priced, and we have our sights set on PSX reaching 100,000 by December 2024,” he added.

“The declining interest rate cycle and positive macroeconomic indicators should further boost investor confidence in this asset class,” Rizvi said.

AKY Securities Chief Executive Officer Amin Yousuf said that market showed positive numbers during the day, adding that it seemed buying was available in the market.

“It seems as if the growth would maintain, there is no negative news in the market,” Yousuf said.