Macroeconomic Factors
KARACHI: On Friday, the Pakistan Stock Exchange (PSX) achieved an all-time high, crossing the 53,000 mark for the first time in history, surging by over 450 points. This surge was driven by increased clarity regarding the stand-by agreement with the International Monetary Fund (IMF) and the announcement of the general election date.
The benchmark KSE-100 index reached an intra-day peak of 53,263.07 points but closed at 53,123.03 points, marking a gain of 466.27 points or 0.89%.
Arif Habib Limited posted on X (formerly Twitter) that the market reached an unprecedented all-time high, surpassing previous records and ushering in a new era of financial excellence.
Capital market expert Saad Ali, in an interview with Geo.tv, explained that the market was buoyed by reduced political risk, positive macroeconomic indicators, expectations of a favorable IMF review, and the anticipation of upcoming interest rate cuts. He noted that the market still appeared undervalued when assessed against historical standards, with a forward earnings multiple of only 4x.
Samiullah Tariq, Pakistan-Kuwait Head of Research, highlighted that strong earnings, the anticipation of clearing the IMF review, and expectations of future interest rate reductions were key drivers of the market’s performance.
In October, the KSE-100 index had been recognized as the world’s third-best-performing market when it reached a six-year high of 51,920 points.
The IMF delegation in Pakistan had praised the steps taken by Pakistan, emphasizing the need for strict implementation of all targets. The IMF mission, led by Nathan Porter, had arrived in Pakistan for two weeks of talks on the second tranche under the SBA (Stand-By Arrangement). Dr. Akhtar assured the IMF that all loan program conditions had been implemented up to that point.
