Shares at PSX climb 700 points to reach new high

Published October 8, 2024
Bullish momentum at Pakistan Stock Exchange (PSX) on Tuesday — PSX data portal
Bullish momentum at Pakistan Stock Exchange (PSX) on Tuesday — PSX data portal

Bulls retained their control at the Pakistan Stock Exchange (PSX) as shares surged more than 700 points on Tuesday.

The benchmark KSE-100 index climbed 799.33, or 0.94 per cent, to stand at 85,709.62 points from the previous close of 84,910.29 points. Finally, the index closed at 85,663.97 points, up by 753.68 points or 0.89pc, from the previous close of 84,910.29.

Mohammed Sohail, chief executive of Topline Securities, said that “continous buying from local and foreign funds” was helping the market reach new highs.

“Despite this, Pakistan market is trading at PE [price-to-earning] of 4 times which is still attractive amid economic stability and falling inflation,” he added.

Awais Ashraf, director research at AKD Securities, said investors were “optimistic about the positive outcomes expected from the upcoming visit of a high-level Saudi delegation, with hopes that Saudi Arabia will invest in the energy, mining, and agriculture sectors”.

Furthermore, he added this optimism was already reflected in the increasing share prices of companies like Oil and Gas Development Company, Pakistan Petroleum Limited, Pakistan State Oil and Pakistan Refinery Limited.

Yesterday, the Foreign Office (FO) confirmed that a high-level Saudi delegation, led by Minister for Investment Khalid Bin Abdulaziz Al-Falih, is set to visit Pakistan from Oct 9 to 11 to boost economic ties between the two countries.

The Saudi delegation is expected to include representatives from both government agencies and the private sector, signalling a broadening of Pakistan-Saudi economic partnerships.

“Additionally, stocks with high dividend yields continue to perform well as fixed income yields decline,” Ashraf added, recommending “that investors focus on stocks poised to benefit from structural reforms and monetary easing”.

Yousuf M Farooq, director research at Chase Securities, attributed the climb to falling bond yields impacting sentiment in the stock market.

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

Opinion

Editorial

Electricity relief
Updated 05 Apr, 2025

Electricity relief

If govt ensures that requisite power reforms are implemented, it will earn much praise for reforming a vital segment of the economy.
Trump’s trade wars
Updated 05 Apr, 2025

Trump’s trade wars

Shoddy math applied by US to indiscriminately penalise its trading partners signals the end of an era of global trade liberalisation.
Legalised land grab
Updated 05 Apr, 2025

Legalised land grab

The Modi government from its inception has been attacking India’s minorities, the largest such community in its crosshairs being the Muslims.
More than words
Updated 04 Apr, 2025

More than words

Holistic development can only work when there is organic and credible political activity in the province.
Poor publicity
04 Apr, 2025

Poor publicity

FORTUNE does not seem to be favouring the PTI — at least not yet. With the party’s founder confined from public...
Party pooper
04 Apr, 2025

Party pooper

INDIA’s role of a spoilsport is tiresome. From pulling books from shelves, such as Wendy Doniger’s The Hindus: ...