From Zeeshan Mirza
KARACHI: The Pakistan Stock Exchange (PSX) Wednesday breached the 58,000 mark for the first time as analysts credit monetary easing and optimism surrounding the economy after the International Monetary Fund (IMF) tranche for driving the market.
The benchmark KSE-100 index jumped to its highest 58,405.92 points in the intraday trade. However, it closed at 58,198.76 points after gaining 827.18 points or 1.44%, up from yesterday’s close of 57,371.59 points.
Arif Habib Limited (AHL) Head of Research Tahir Abbas, while speaking to Geo.tv, said that the market was continuing its positive momentum amid expectations of monetary easing, strong profitability, and certainty on the upcoming general election — slated to take place on February 8 next year. “Moreover, despite the fact that the market is trading at an all-time high, the valuation of the market is still attractive. The KSE-100 index is currently trading at a PE (price to earning ratio) of 4.3x as compared to the last 5-year average multiple of 6x,” he added.
Meanwhile, Pakistan-Kuwait Head of Research, Samiullah Tariq told Geo.tv that the market is responding to the hopes of IMF board approving the tranche under the SBA as well as the low valuations compared to the region.
Overall trading volumes reached 596.2 million shares compared with Tuesday’s tally of 1.01 billion. The value of shares traded during the day was Rs22.05 billion. Shares of 389 companies were traded. Of these, 236 stocks closed higher, 136 fell, and 17 remained unchanged. WorldCall Telecom was the volume leader trading in 50.3 million shares, losing Rs0.03 to close at Rs1.64. It was followed by Fauji Fert Bin with 23.2 million shares, gaining Rs0.31 to close at Rs22.94, and Fauji Foods Ltd with 20.1 million shares, gaining Rs0.22 to close at Rs8.99.
Meanwhile, Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index is projected to soar around 30% in the next 13 months to a record high at 75,000 points in December 2024, signalling share prices of top 100 companies will rise to new highs. In its comprehensive report titled “Stock market recovery has just begun – Index likely to reach 75k in 2024,” Topline Research said “smooth transfer of power to new government after elections, new long-term funding programme from the IMF and expected fall in interest rate will be the key drivers for equities in 2024.” The index has soared by a net 44%, or 15,750 points, in the past four and a half months and reached the all-time high at 57,751 on November 16 after the IMF awarded a $3 billion loan programme and the successful first review. The research house said a major factor that would provide liquidity to stocks was the expected fall in policy rate. “With clear signs of economic stabilisation, we expect State Bank of Pakistan’s (SBP) policy rate to fall 7% in 2024 to reach 15% by December 2024.”
