ISLAMABAD: The Pakistan Stock Exchange’s benchmark index surged further, hitting a fresh all-time high and surpassing the 59000 mark, maintaining its upward trajectory from previous sessions.
At 10 am on Friday, the KSE-100 index marked 59,402 points, rising by 502 points or 0.85 percent compared to the prior close of 58,899, as reported on the PSX website.
Throughout the week, the index, representing key shares, has consistently climbed, benefiting from an optimistic macroeconomic outlook post the successful review of the International Monetary Fund (IMF) program.
The upcoming IMF funds, slated for issuance next month following the executive board meeting, constitute the second tranche of a nine-month bailout package. This installment will bring the total disbursements under the approved $3 billion package (granted in July) to nearly $1.9 billion.
The surge in foreign institutional buying, according to the head of equities at Intermarket Securities Ltd, has fueled this rally.
“Despite the recent robust rally, valuations continue to be attractive. The government’s attention to the economy and effectively managed risks contribute to the current stability,” mentioned the equities head.
Additionally, the completion of the IT export policy has significantly invigorated the tech sector.
Chief Executive of Topline Securities, Mohammed Sohail, expressed the perspective that the stock market is recovering from losses incurred over recent years.
He highlighted the positive impact of the finance minister’s statement about the government’s aim to secure $1.5 billion post the IMF tranche, positively influencing market sentiment.
Experts emphasized the pivotal role of declining oil prices in determining the Pakistani market’s future performance. He highlighted a technical upside target for the index at 59,294.
However, they cautioned that the market might find support levels at 58,450-58,700, with a subsequent level at 58,246. A breach below this point could trigger a corrective trend.
