PSX surges to all-time high, crosses 53,000 points

Relatively smooth IMF review, election date announcement play positive role

KARACHI:

The Pakistan Stock Exchange (PSX) hit a new all-time high after a gap of six-and-half-year, surpassing the psychological barrier of 53,000 points on Friday in the wake of outstanding profits reported by companies listed at the bourse.

PSX benchmark KSE 100 Index hit an intra-day high of 53,263 points, surging by 1.15% or 605 points at 10:55 am on Friday compared to Thursday's closing at 52,656.76 points.

To recall, the index hit the previous record high closing of 52,876.46 points on May 24, 2017.

Amid intra-day profit-taking, the day-high gains clipped to 455 points with the index hovering at 53,111 points at the time of Friday prayers and lunch break at mid-day.

Market talk suggests the index spiked to a new historical high amid most of the listed companies reporting record-high profits for the quarter that ended September 2023 despite the economic slowdown.

The companies include commercial banks and oil and gas exploration companies.

On the other hand, the relatively smooth first International Monetary Fund (IMF) review of the domestic economy under its $3 billion loan programme started on Thursday and backed the market sentiments.

Moreover, the announcement of the election date by the Election Commission of Pakistan (ECP) in consultation with President Arif Alvi also encouraged investors to buy stocks at rising prices.

Arif Habib Limited said on X "PSX market soars to all-time highs”.

The market, for the very first time in its history, has achieved a remarkable milestone by soaring to an unprecedented all-time high, surging past previous records and setting a new era of financial excellence.

Topline Securities, CEO, Muhammad Sohail said on X that after a long period of six-and-half years, the Pakistan benchmark stock index is at an all-time high.

Don’t forget this is an index (total return) with dividends and bonuses. "Valuation is still low 4 times earnings as against PE (price to earning ratio) of 12 in 2017”.

"Reduction in economic and political uncertainties can take this market to new high," Sohail said.