PSX continues bullish run, gains over 700 points

Published November 6, 2023
— PSX data portal
— PSX data portal

The benchmark index at the Pakistan Stock Exchange (PSX) continued its positive momentum from last week on Monday, buoyed by expectations of a successful International Monetary Fund review.

The index gained over 400 points in the early morning trade. The market finally closed at 53,860.36 points, up 737.33 points or 1.39 per cent from the previous close of 53,123.03.

The benchmark of the national bourse exceeded in the outgoing week its all-time high of 52,876 points that it achieved in May 2017.

The KSE-100 index has gained more than 30pc this year, with a turnaround in fortunes coming after the IMF approved a $3 billion loan programme in July to avert a sovereign debt default.

A delegation of the global lender landed in Islamabad last week for the much-awaited loan review talks, setting the stage for a deep dive into forward-looking reforms under a nine-month bailout package, slated to be completed in March next year.

Ahsan Mehanti of the Arif Habib Corporation attributed today’s run to the announcement of general elections on Feb 8, the government’s deliberations on the Special Investment Facilitation Council, projects under the China-Pakistan Economic Corridor and Pakistan’s ongoing talks with the IMF.

Speaking to Dawn.com, Topline Securities CEP Mohammed Sohail said the “falling interest rate in secondary markets” was helping the equity market.

Intermarket Securities’ Head of Equity Raza Jafri said there was growing confidence that the ongoing IMF review would be successful, in addition to the continuing company buybacks adding impetus to the market.

However, he added that the market participants were recognising that while the index was at an all-time high in terms of index points, it was still very cheap on valuations.

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