54270 points
ISLAMABAD: The Stock market in Pakistan set another record as it crossed 54270 points on Tuesday morning.
The KSE-100 benchmark index hit 54,276 points with a 415-point gain on Tuesday till 11:55 am.
Positive discussions with the IMF and the election date announced on the intervention of the Supreme Court boosted the stock market sentiment.
The volume of shares traded at PSX amounted to 116.66 million involving 6.7 billion rupees.
If the talks with the IMF conclude on a positive note, it will further give a boost to stock market trading.
Pakistan’s economic team and the IMF officials have been holding talks since November 2, 2023, over the economic evaluation of the country under the Stand-by Arrangement.
Meanwhile, on Tuesday, international experts said that Pakistan’s red-hot stock market is nearing the brink of overheating, with a widely monitored momentum indicator reaching its highest level in 18 years.
The KSE-100 Index’s 14-day relative strength index (RSI) has surged past 90, a level not seen since March 2005. Historical data compiled by Bloomberg reveals that in the prior 14 instances when the RSI surpassed this threshold, the index retreated on eight occasions within the following 20 days, with an average decline of 4.2%.
To explain, the relative strength index (RSI) gauges a security’s strength by comparing its performance on days when prices rise to its performance on days when prices fall.
The Pakistan stock market’s remarkable surge to the top of the global rankings came after securing a $3 billion Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) toward the end of FY23, effectively averting a sovereign debt default for the nation.
Some analysts have anticipated 60,000 points next target for the Pakistan Stock Exchange. Nevertheless, it will depend on the outcome of ongoing talks between the IMF and Pakistan.
