On Monday, the Pakistan Stock Exchange (PSX) crossed 71,000 points for the first time, nearing 72,000 points. The KSE-100 Index rose 940 points to 71,850 points at 1:38 pm, achieving a record high.
The index stayed near 71,772 points throughout the day, reflecting a 1.22% gain. This increase signifies growing investor confidence following the government’s request to the IMF for a loan.
Despite its continual rise since December 2023, the market remains reasonably priced. Muhammad Sohail, CEO of Topline Securities, noted the KSE-100 Index’s significant milestone and the factors contributing to this trend, including robust dividends and the IMF loan request.
Meanwhile, the market’s PE ratio is 4, suggesting favourable investment conditions. The expected $6-8 billion IMF loan over three years aims to support debt repayment and economic recovery.
Leading the market rally were banks, technology firms, and petroleum refineries. Several refineries are nearing agreements to upgrade facilities and enhance premium product output.
Investor interest has also grown in the national airline following plans for its restructuring and privatization. This interest is bolstered by active foreign investment.
This surge in the stock market coincided with Iranian President Ebrahim Raisi’s visit, potentially influencing regional politics amidst Middle Eastern tensions.
Last week, the PSX broke a losing streak with a 620-point gain on April 19, spurred by a potential Saudi investment in the Reko Diq mining project.
That week, despite geopolitical concerns, the national airline reached new heights in an earnings season rally driven by the oil and banking sectors on April 19.
