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Bulls toss KSE-100 index over 47,000-mark — highest in 21 months

Benchmark index moves up by 394.47 points, closing the day at 47,076.9 points

By Business Desk
July 27, 2023
A stockbroker looks at the latest share prices at the Pakistan Stock Exchange (PSE) in Karachi on February 3, 2023. — AFP
A stockbroker looks at the latest share prices at the Pakistan Stock Exchange (PSE) in Karachi on February 3, 2023. — AFP

Shares at the Pakistan Stock Exchange (PSX) rallied past the 47,000 mark Thursday to a 21-month high on optimism from the International Monetary Fund (IMF) deal, with analysts expecting the market to gain further.

The position of the bulls was further strengthened by encouraging corporate results, especially in the index-heavy sectors.

The benchmark index moved up by 394.47 points and closed the day at 47,076.9 points, the highest level since November 8, 2021, according to Arif Habib Limited (AHL).

— PSX
— PSX

The brokerage firm mentioned that the market had gained 5,751 points (+13.9%) since the staff-level agreement with the IMF for the $3 billion Standby Agreement (SBA).

"The momentum is positive after the IMF SBA facility because the valuation has increased," AHL Head of Research Tahir Abbas told Geo.tv.

He said that the KSE-100 is currently trading at a PER of 3.7x as compared to the last financial crisis (2008) when the lowest was 3.9x.

Abbas said the market is still attractive, which is why the positive momentum continues. "It is expected that the market will gain further."

Capital market expert Saad Ali said IMF optimism and outlook for greater macro stability had complemented good corporate results in the present result season.

"...many banks and companies have surprised with their earnings and payouts despite a tough macro backdrop," the expert added.

Pakistan's signed a short-term deal with the IMF late last month, enabling the country to stave off a default and shore up its foreign exchange reserves.

Shares of 344 companies were traded during the session. At the close of trading, 146 scrips closed in the green, 182 in the red, and 16 remained unchanged.

Worldcall Telecom Limited was the volume leader with 40.14 million shares traded, losing Rs0.02 to close at Rs1.39. It was followed by K-Electric Limited with 30.12 million shares traded, remaining the same to close at Rs2.30 and Oil & Gas Development Company with 28.45 million shares gaining Rs4.97 to close at Rs91.79.