PSX continues bullish run, gains 700 points

Published November 23, 2023
The Pakistan Stock Exchange on Nov 23, 2023. — PSX data portal
The Pakistan Stock Exchange on Nov 23, 2023. — PSX data portal

The benchmark index of the Pakistan Stock Exchange (PSX) continued its bullish run on Thursday and stayed above the 58,000 level.

According to the PSX website, the KSE-100 index recorded steady gains throughout the day before finally closing at 58,899.84 points, up 701.08 or 1.2 per cent from the previous close of 58,198.76 points.

Maintaining its bullish streak from the preceding week, the benchmark index hit yet another all-time high and crossed the 58,000 barrier a day earlier.

The inflow of dollars from the International Monetary Fund (IMF) expected next month supported the momentum along with upbeat economic indicators on the current account deficit and home remittances.

Speaking to Dawn.com today, Raza Jafri, the head of equities at Intermarket Securities Ltd, attributed the rally to the resumption of foreign buying.

He forecasted that with the government focused on the economy, interest rates were expected to decrease going forward.

With “risks seemingly under control, the bull run in Pakistan equities can extend and potentially turn into a multi-year rally”, Jafri added. He emphasised that banks, energy and construction sectors in particular appeared attractive.

Meanwhile, Equity Sales Head Faraz Rizvi highlighted that the prices remained relatively low despite the surge.

“Moving from a market cap of $20 billion to now approaching $30 billion, the market’s price-to-earnings multiples still lag behind regional counterparts,” he said.

Rizvi went on to say that the declining oil prices were expected to be beneficial for the Pakistan economy. “On the technical side, the market is currently in an overbought scenario, suggesting a potential for a minor short-term correction,” he added.

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

Opinion

Editorial

X post facto
Updated 19 Apr, 2024

X post facto

Our decision-makers should realise the harm they are causing.
Insufficient inquiry
19 Apr, 2024

Insufficient inquiry

UNLESS the state is honest about the mistakes its functionaries have made, we will be doomed to repeat our follies....
Melting glaciers
19 Apr, 2024

Melting glaciers

AFTER several rain-related deaths in KP in recent days, the Provincial Disaster Management Authority has sprung into...
IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...