The Pakistan Stock Exchange (PSX) witnessed the KSE-100 index rising steadily throughout the day, ultimately closing at a new high of 58,899.84 points. This marked an increase of 701.08 points or 1.2% over the previous closing figure of 58,198.76 points.
Continuing its upward trend from the previous week, the index reached another record peak, surpassing the 58,000 mark just a day earlier.
The market’s positive trajectory was bolstered by the anticipated inflow of funds from the International Monetary Fund (IMF) expected in the coming month. This, coupled with encouraging economic data related to the current account deficit and remittances, fueled investor confidence.
Raza Jafri, Head of Equities at Intermarket Securities Ltd, in a conversation with Dawn.com, credited the market rally to renewed foreign investment. He projected a potential decrease in interest rates due to the government’s economic focus, which could extend the bullish trend in Pakistan’s equities into a multi-year rally. Jafri pointed out that the banking, energy, and construction sectors seemed particularly promising.
Faraz Rizvi, Head of Equity Sales, noted that despite the market’s growth, share prices remained comparatively low. He observed that the market’s capitalization had grown from $20 billion to nearly $30 billion, yet its price-to-earnings ratios were still below those of regional peers.
Rizvi also mentioned the positive impact of falling oil prices on Pakistan’s economy and hinted at the possibility of a short-term market correction due to the current overbought conditions.