PSX Hits Milestone: KSE-100 Surges Beyond 58,000 Points on Upbeat Economic Indicators
In a display of robust market optimism, the Pakistan Stock Exchange (PSX) extended its upward trajectory, achieving a historic high as the benchmark KSE-100 Index breached the 58,000-point threshold during Wednesday's trading session.
Karobar
As of 12 pm, the benchmark index soared to 58,035.58, reflecting a noteworthy 1.16% uptick or 664.00 points. The market observed widespread buying, particularly in sectors such as automobile assemblers, cement, chemical, commercial banks, fertilizer, oil and gas exploration companies, and OMCs.
Tuesday's trading session witnessed the benchmark index gaining 294 points or 0.51%, concluding at 57,371.59. The ongoing bullish trend is credited to improved economic indicators within the country, coupled with the successful negotiations of the interim government with the International Monetary Fund (IMF) for the first review. This positive development is anticipated to unlock $700 million in funding, with analysts speculating that it may attract additional inflows from other multilateral and bilateral partners post-review.
New day, new high. Index 58000. But prices still low
From marketcap of USD20b to now close to USD30b
One of the fastest but not unexpected recovery at Pakistan Stock Exchange.
50% return in UD dollars in 6 months. After 6 bad years
And the good thing is... This recovery has… — Mohammed Sohail (@sohailkarachi) November 22, 2023
Mohammed Sohail, CEO of Topline Securities, emphasized the swift and somewhat expected recovery at PSX. He pointed out that the stock exchange has delivered an impressive 50% return in USD terms over the past six months. Sohail expressed optimism, highlighting that the market's price-to-earning ratio (PE) remains at remarkably low levels, suggesting that the recovery is only in its initial stages.
During a meeting of the Donor Coordination Committee (DCC) at the Ministry of Economic Affairs on Tuesday, Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar, shared positive developments in economic recovery. Despite external challenges such as tightening global financial conditions and rising commodity prices impacting Pakistan's economy, Dr. Akhtar underscored the significant achievement of the successful review of the IMF staff-level agreement. She conveyed confidence in the economic outlook, projecting a GDP growth ranging between 2 to 2.5% in the fiscal year 2024.
