The Pakistan Stock Exchange (PSX) celebrated a significant milestone as its benchmark KSE-100 Index surged past the 53,000 mark, surpassing the previous all-time high of 53,127.24 set in May 2017 during intra-day trading.
At around 10:45 am, the KSE-100 Index reached a new intra-day record of 53,140.65, with a gain of 483.89 points or 0.92% for the day. Notably, the KSE-100 Index had never closed above 53,000, with its highest closing at 52,876.46, achieved on May 24, 2017.
This achievement was attributed to various factors, including positive sentiment stemming from the IMF’s acknowledgment of government measures and strong corporate results. The announcement of Pakistan’s election date by the Election Commission of Pakistan, along with reports of the International Finance Corporation’s commitment to inject over $1.5 billion into the country’s economy, contributed to the bullish trend.
Market experts believe that this momentum is likely to continue, especially with a successful IMF review potentially leading to further inflows.
The recent meeting between the IMF staff-level mission and Pakistan’s caretaker Finance Minister also played a role in this positive development. Additionally, specific sectors, such as construction and oil/gas, witnessed gains, with PSMC hitting the upper limit in stock prices. This marked a significant recovery for the Pakistan Stock Exchange, which had been under pressure for various reasons in recent years.
While the KSE-100 Index reached a new all-time high after 6.5 years, market participants highlighted that valuations remain relatively low, at just 4 times earnings, compared to a PE ratio of 12 in 2017. The reduction of economic and political uncertainties was seen as a potential catalyst to drive the market to new heights.
