In a thrilling display of financial fervour, the Pakistan Stock Exchange (PSX) has soared to unprecedented heights, crossing the remarkable 59,000 milestone in intraday trading. This achievement, marking yet another all-time high on Friday, underscores the continuing bullish momentum that has characterised the preceding sessions.
As the clock struck 10 am, the KSE-100 index proudly stood at 59,402.82 points, exhibiting a substantial increase of 502.98 points or 0.85%, resonating with the bullish trend that has captivated the market. The week has witnessed consistent gains in the benchmark index, fueled by an optimistic macroeconomic outlook following a successful review of the International Monetary Fund (IMF) program.
Behind this remarkable surge lies the anticipation of IMF funds, set to be issued in the coming month after the lender’s executive board meeting. This tranche represents the second instalment of the nine-month bailout package, bringing total disbursements to nearly $1.9 billion from the approved $3 billion package in July.
Industry experts weigh in on the factors propelling this extraordinary rally. Raja Jafri, head of equities at Intermarket Securities Ltd, attributes the upswing to the resurgence of foreign institutional buying. Despite the recent sharp rally, Jafri notes that valuations remain attractive, highlighting the government’s focused approach to managing economic risks. He emphasises that the completion of the IT export policy has ignited enthusiasm in the tech sector.
Meanwhile, Mohammed Sohail, Chief Executive of Topline Securities, sees the stock market reclaiming losses from recent years. He credits positive sentiments to the finance minister’s remarks about the government seeking $1.5 billion post the IMF tranche.
JS Global equity sales head, Syed Faran Rizvi, offers a technical perspective, identifying a consistent upside target at 59,294. However, he issues a word of caution, indicating potential support levels on the downside and highlighting the pivotal role of declining oil prices in determining the Pakistani market’s future performance. As the PSX continues its spectacular rally, investors eagerly anticipate the unfolding dynamics that may shape the market in the days to come.