Sunday May 26, 2024

PSX surges past 53,000 points to reach all-time high

Capital market expert says market driven by abating political risk, favourable IMF review and anticipation of rate cuts

By Business Desk
November 03, 2023
An investor at the PSX. — AFP/File
An investor at the PSX. — AFP/File

KARACHI: The Pakistan Stock Exchange (PSX) Friday surged past the 53,000 point mark to hit an all-time high after it gained over 400 points on positive cues including political clarity over the election date and expectations of clearing the International Monetary Fund (IMF) review.

Benchmark KSE-100 index jumped to an all-time high of 53,263.07 points during the intra-day trade but closed at 53,123.03 points with a change of 466.27 points or 0.89%.

Arif Habib Limited wrote on X, formerly Twitter, that the market has achieved a remarkable milestone by soaring to unprecedented all-time high levels, surging past previous records and "setting a new era of financial excellence".

Capital market expert Saad Ali told that the market was driven by abating political risk, macro indicators moving in the right direction, the expectation of a favourable IMF review and anticipation of rate cuts in the near term.

"However, the market remains cheap by historical standard at only 4x forward earnings," he said.

Pakistan-Kuwait Head of Research, Samiullah Tariq, told "Strong earnings, expectations of clearing IMF review, and expectations of a decline in interest rates in the future are driving the market."

In October, the KSE-100 index was announced as the world’s third best-performing market as it touched a six-year high level of 51,920 points.

A day earlier, the IMF delegation in Pakistan lauded the steps taken by Pakistan but emphasised that Pakistan has to strictly implement all the targets.

The IMF mission led by Nathan Porter had arrived in Pakistan a day earlier to lead the two-week-long talks on the second tranche under the SBA.

Dr Akhtar assured the IMF that targets are being implemented under the loan programme and that all the conditions of the IMF have been implemented so far.

Overall trading volumes increased to 509.1 million shares compared with Thursday's tally of 475 million. The value of shares traded during the day was Rs15.5 billion.

Shares of 365 companies were traded. Of these, 115 stocks closed higher, 115 fell, and 25 remained unchanged.

Kohinoor Spining was the volume leader trading in 43.1 million shares, gaining Rs0.27 to close at Rs2.26. It was followed by Pak Refinery with 41.8 million shares, gaining Rs1.08 to close at Rs22.65, and TPL Properties with 29 million shares, gaining Rs0.28 to close at Rs13.38.