PSX maintains bullish streak, crosses 58,000 milestone

Published November 22, 2023
— PSX data portal
— PSX data portal

The benchmark index of the Pakistan Stock Exchange (PSX) continued its momentum from the previous session on Wednesday and surpassed the 58,000 level.

According to the PSX website, the KSE-100 index closed at 58,198.76 points, up 827.18 or 1.44 per cent from the previous close of 57,371.58 points, after trading in the green throughout the day.

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.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Iran’s counterstrike
Updated 15 Apr, 2024

Iran’s counterstrike

Israel, by attacking Iran’s diplomatic facilities and violating Syrian airspace, is largely responsible for this dangerous situation.
Opposition alliance
15 Apr, 2024

Opposition alliance

AFTER the customary Ramazan interlude, political activity has resumed as usual. A ‘grand’ opposition alliance ...
On the margins
15 Apr, 2024

On the margins

IT appears that we are bent upon taking the majoritarian path. Thus, the promise of respect and equality for the...
Noshki killings
Updated 14 Apr, 2024

Noshki killings

It must be asked why Baloch separatists continue to target civilians as well as security men despite large deployment.
Upholding the law
14 Apr, 2024

Upholding the law

THE recent discord in Bahawalnagar offers a chance to reflect on the sanctity of the law and its enforcement across...
Tragic travels
14 Apr, 2024

Tragic travels

FOR those embarking on road and boat journeys, the probability of fatal accidents has seen a steady rise. The recent...