The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) rose about 900 points in the intraday session on Wednesday as Islamabad completed the final pre-condition for the revival of the IMF loan program.
In the first 10 minutes of the trading session, the benchmark KSE-100 index rose 895.43 points to 41,087.04 points. Adding fuel to the fire were good financial results, a strengthening rupee against the US dollar, and an expected reduction in oil import expenses.
Former federal ministry of finance adviser and economist Dr. Khaqan Hassan Najeeb emphasized that investors must remember the underlying driver of stock prices is firm earnings.
“However, in recent months, the macro fundamentals of the country have been dominating in driving the PSX lower,” he added, saying that as the country moves closer to an IMF program, investor confidence can return to PSX.
With low P/E ratios on decent earnings and solid management, experienced investors know it’s a good opportunity to purchase at low prices.
Once Pakistan receives the IMF’s $1.2bn, according to Alpha Beta Core CEO Khurram Schezad, multilateral inflows would be unlocked, followed by bilateral and friendly countries.
As a result of the inflows and the global and local crisis, oil and commodity prices will fall globally, reducing demand for dollar outflows.
“For the time being, the rupee’s value against the dollar should benefit from this. It should have a favorable effect on the PSX as well “he went on to say.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
