The Pakistan Stock Exchange (PSX) continued a record-breaking spree on Monday as it crossed 71,000 points for the first time in history and surged close to the 72,000 mark.
The PSX benchmark KSE-100 Index surged by 1.33% or 940 points and hit an unprecedented all-time high of 71,850 points at 1:38 pm today.
As the trading day progressed, the index maintained its momentum, hovering around 71,772 points, marking an impressive intra-day gain of 1.22% or 862 points.
The increase in activity reflected investors' confidence in the domestic economy, particularly following the government's formal approach to the International Monetary Fund (IMF) for a new loan programme.
Despite the relentless climb of the benchmark index since December 2023, stocks have managed to maintain an affordable stance.
Chief Operating Officer (CEO) of Topline Securities Muhammad Sohail emphasized the sustained positive sentiments pervading the local bourse.
Sohail highlighted the noteworthy milestone of the KSE-100 Index surpassing the 71,000-point mark, attributing the momentum to multiple factors including the government's IMF loan request and robust dividends in the first quarter.
Despite the market's upward trajectory, the forward-looking price-to-earnings ratio (PE) remained at 4, indicating favourable conditions for investors.
Read Saudi visit, IMF talks take PSX to new record
The anticipated IMF loan programme, expected to range between $6-8 billion over three years, is anticipated to facilitate timely repayment of maturing foreign debt and fostering economic rejuvenation in the country.
Amid the remarkable rally, stocks from various sectors, notably banks, technology, petroleum refineries, and airlines, took the lead. Banks held sway over the market, while technology firms played an increasingly significant role in bolstering the country's exports.
Currently, several petroleum refineries listed on the bourse are on the brink of sealing contracts with the government to upgrade their facilities. The objective is to enhance the production of premium products like petrol and diesel while minimizing the output of outdated furnace oil.
Moreover, investor interest in the national flag carrier has surged following shareholder approval for the company's restructuring and privatization. Foreign investors are also actively participating in this surge, injecting fresh investments.
This record-making performance at the national stock market coincides with the official visit of Iranian President Ebrahim Raisi to Pakistan, further solidifying friendly ties between the two nations and potentially reshaping the political dynamics in the region amidst ongoing Middle Eastern geopolitical tensions.
Last week, on April 19, PSX snapped a three-day losing streak and notched up significant gains as the KSE-100 index reached a historic high above 70,900 with a surge of 620 points, the State Bank of Pakistan attributed the surge's major trigger to the anticipated deal with Saudi Arabia for a minority stake in Pakistan’s Reko Diq copper and gold mining project.
Earlier the same week, the national flag carrier was able to further new records in an earnings season rally backed by gains in oil and banking stocks on April 19, despite volatile trading and concerns over escalating geopolitical tensions.
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