PSX crosses 80,000 barrier during intraday trade, maintains all-time high

Published June 21, 2024
This screengrab shows activity at the Pakistan Stock Exchange (PSX) on June 21. — PSX data portal
This screengrab shows activity at the Pakistan Stock Exchange (PSX) on June 21. — PSX data portal

The Pakistan Stock Exchange (PSX) on Friday witnessed fluctuation as shares momentarily crossed the 80,000 level during intraday trade before closing at a sustained record high from a day ago.

A day ago, the benchmark KSE-100 index had closed at an all-time high of almost 78,800 points.

Today, the index gained 1238.54 points, or 1.57 per cent, to stand at 80,059.87 at 9:47am — a record high — from the previous close of 78,801.53.

It then receded to 78,169.02 at around 3pm — plunging more than 600 points from the previous close. However, the market finally closed at 78,810.49 — maintaining its record high level with a meagre rise of nine points.

Tahir Abbas, head of research at Arif Habib Limited, said, “The market continues its positive momentum as investors are optimistic about the new IMF programme, downward inflation, interest rates trajectory and flows converting from fixed income to equities.”

Mohammed Sohail, chief executive of Topline Securities, noted that the index had reached “another record high”, climbing by 99pc in a year.

He attributed today’s climb to “positive sentiments led by tax laden budget” which investors feel will help in getting the long-term International Monetary Fund (IMF) loan.

“Investors are optimistic about the macroeconomic stability that will create a favorable environment for monetary easing,” Awais Ashraf, director research at AKD Securities, said, adding that this “subsequently reduces the required rate of return for investors in the equity market”.

“Moreover, the scarcity of other profitable investment opportunities, particularly in real estate and commodities, is also driving the recent KSE-100 rally,” he added.

On Thursday, analysts had attributed the post-Eid bullish momentum to the rating agencies’ recent outlook for Pakistan.

Raza Jafri, chief executive of EFG Hermes Pakistan, had highlighted Fitch’s “dovish view on inflation outlook and the proposed reduction in electricity tariffs for industries”.

Yousuf M Farooq, director of research at Chase Securities, had also mentioned that “comments from Fitch and Moody’s have all contributed to” yesterday’s market rally.

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