The Pakistan Stock Exchange (PSX) saw a strong performance on Friday as shares surged more than 500 points in intraday trade, setting a new record.
The benchmark KSE-100 index rose by 532.44 points, or 0.57%, reaching 94,724.33 points, up from the previous close of 94,191.89 points at 11:11 am.
Mohammed Sohail, CEO of Topline Securities, attributed the rally to “continuous buying by local funds following a sharp drop in interest rates.” He also noted that the International Monetary Fund (IMF) staff visit suggested the economy was stabilizing.
Awais Ashraf, Director of Research at AKD Securities, mentioned that the KSE-100 index was fueled by a stay order granted to banks on the implementation of the ADR tax, along with monetary easing and improvements in the cash flows of companies affected by circular debt.
He predicted that equities would continue to perform well, supported by an attractive price-to-earnings ratio of 4.2x, especially as returns on fixed-income instruments and commodities decline.
Yousuf M. Farooq, Director of Research at Chase Securities, linked the gains to investor flows, with cash moving from fixed-income mutual funds into equities as returns in those sectors fell. He also highlighted that macroeconomic indicators were trending toward stability, with circular debt accumulation slowing and increasing sales in the automotive and FMCG sectors.
Farooq added that the property market was showing signs of recovery, with increased activity as buyers feared missing out.
Yesterday, the stock market hit a record high of 94,000 points. According to Topline Securities Ltd, this upward movement was driven by increasing economic optimism, supported by reports indicating that the IMF had no issues with Pakistan’s progress in achieving its revenue collection goals. This development alleviated concerns about the possibility of a mini-budget or the introduction of new taxes.
