Shares at the Pakistan Stock Exchange (PSX) reached a new milestone of 80,000 points on Wednesday as stocks surged by 600 points in intraday trade.
The benchmark KSE-100 index rose by 627.99 points, or 0.79%, reaching 80,180.87 points from the previous close of 79,552.88.
Yesterday, the index had crossed the historic 79,000 mark for the first time. Analysts attributed this bullish trend to rising global crude oil prices, expectations of substantial dividend payouts from state-owned enterprises in the oil sector, and ongoing positive negotiations for an International Monetary Fund (IMF) bailout deal scheduled for this month.
Awais Ashraf, Director of Research at AKD Securities, credited today’s upward momentum to “anticipated entry into the broader IMF program and expected monetary easing, which are boosting investor confidence in equities.” He also noted that the KSE-100 was trading at an attractive forward price-to-earnings (P/E) ratio of 3.6x.
“Stringent fiscal policy and a cautious stance by the central bank, coupled with foreign inflows into both debt and equities, have eased concerns about currency stability,” he added.
Shahab Farooq, Director of Research at Next Capital Limited, remarked, “The KSE-100 Index hit a new all-time high today, surpassing the 80,300 mark.”
He observed, “Following the passage of the finance act that has paved the way for finalizing the new IMF program, the market has responded positively with improved sentiments.”
Furthermore, Farooq highlighted that “attractive” valuations, with a forward price-to-earnings ratio of less than 4x, stable currency conditions, and expectations of ongoing monetary easing, were influencing sectors like oil & gas and banking positively.
