Record-setting spree continues at PSX as shares cross 80,000 in intraday trade

Shares at Pakistan Stock Exchange (PSX) crossed another milestone of 80,000 points on Wednesday as stocks climbed 600 points in intraday trade.

The benchmark KSE-100 index climbed 627.99 points, or 0.79 per cent, to stand at 80,180.87 points from the previous close of 79,552.88.

On Tuesday, the index had crossed the 79,000 milestone for the first time in its history. Analysts attributed the bullish trajectory to surging global crude oil prices, expectations for strong dividend payouts by the oil sector dominated by state-owned enterprises, and ongoing positive talks for an International Monetary Fund (IMF) bailout deal this month.

Awais Ashraf, director research at AKD securities, attributed today’s upward momentum to “expected entry into the larger IMF programme and expected monetary easing boosting investor confidence in equities”. He also pointed out that the KSE-100 was trading at a cheaper forward price-to-earning (P/E) ratio of 3.6x.

“Contractionary fiscal policy and a cautious central bank stance, along with the foreign inflows both in debt and equities, has alleviated concerns over currency stability,” he added.

“The KSE-100 Index made a new all-time high today, crossing 80,300 mark,” Shahab Farooq, director research at Next Capital Limited, said.

He noted, “After passage of the finance act that has paved the way for finalisation of the new programme with the IMF, the market has responded positively with improved sentiments.”

Moreover, Farooq highlighted that “attractive” valuations with forward price-to-earning ratio hovering less than 4x, stable currency and expectations of continuation of monetary easing were coming into play in the oil & gas and banking sectors.

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