Bulls take PSX to another peak above 63,000 level

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

Bulls maintained their dominance on the trading floor of the Pakistan Stock Exchange (PSX) on Wednesday and crossed the 63,000 milestone.

According to the PSX website, the KSE-100 index closed at 63,917.72 points, up by 961.70, from the previous close of 62,956.02. At 3:15pm, it briefly crossed the psychological barrier of 64,000 before retracting.

The benchmark of representative shares has seen a record-breaking streak in recent days. Analysts predict the bullish momentum would continue well into 2024, driven by optimistic expectations of an improved economic landscape going forward.

Additionally, there’s speculation about a likely reduction in the benchmark interest rate, currently at 22 per cent, in the upcoming meeting of the Monetary Policy Committee (MPC) of the State Bank of Pakistan.

Tahir Abbas, head of research at Arif Habib limited, said the market maintained its upward trend due to an appealing valuation compared to historical averages.

He also highlighted that foreign investors were active in the market, adding that the Pakistani stock market “stood out as one of the top-performing global markets, capturing the interest of foreign investors”.

“Regionally, the KSE-100 index boasts the most attractive valuation in terms of PE (Price-to-earning ratio), while also offering the highest dividend yield,” Abbas told Dawn.com.

Sana Tawkfik, deputy head of research at Arif Habib Limited, attributed today’s rally to a spike in foreign buying.

She noted that the year-on-year decline in trade deficit by 32pc in November was a positive development for investors who were looking for a sign of improving economic outlook.

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