Shares at Pakistan Stock Exchange (PSX) crossed another milestone of 80,000 points on Wednesday as stocks climbed more than 600 points.

The benchmark KSE-100 index climbed 627.99 points, or 0.79 per cent, to stand at 80,180.87 points from the previous close of 79,552.88. Finally, the index closed at a record-high 80,233.67, up by 680.79 points or 0.86pc, from the previous close.

On Tuesday, the index had crossed the 79,000 milestone for the first time in its history. Analysts attributed the bullish trajectory to surging global crude oil prices, expectations for strong dividend payouts by the oil sector dominated by state-owned enterprises, and ongoing positive talks for an International Monetary Fund (IMF) bailout deal this month.

Awais Ashraf, director research at AKD securities, attributed today’s upward momentum to “expected entry into the larger IMF programme and expected monetary easing boosting investor confidence in equities”. He also pointed out that the KSE-100 was trading at a cheaper forward price-to-earning (P/E) ratio of 3.6x.

“Contractionary fiscal policy and a cautious central bank stance, along with the foreign inflows both in debt and equities, has alleviated concerns over currency stability,” he added.

Yousuf M Farooq, director research at Chase Securities, said that “the market has generally rallied when the country has had its external account under control”.

“Trade deficit has clocked in at a comfortable 2.39bn and currency outlook remains stable,” he explained, adding that “the number of investors at the exchange is gradually increasing and earnings of listed firms are growing as the economy is on the path of stabilisation”.

Shahbaz Ashraf, chief investment officer at FRIM Ventures, echoed the same sentiments.

He said, “The key reason for the market continuing its bull run is that the government is inching closer day by day towards finalising the IMF deal.”

Moreover, he noted that “another key attribute for the market to perform is market attractiveness”, adding that the price-to-earning ratio was at an enticing 4x compared to its average multiple of 8x.

“The KSE-100 Index made a new all-time high today, crossing 80,300 mark,” Shahab Farooq, director research at Next Capital Limited, said.

He noted, “After passage of the finance act that has paved the way for finalisation of the new programme with the IMF, the market has responded positively with improved sentiments.”

Moreover, Farooq highlighted that “attractive” valuations with forward price-to-earning ratio hovering less than 4x, stable currency and expectations of continuation of monetary easing were coming into play in the oil & gas and banking sectors.