The benchmark index of the Pakistan Stock Exchange (PSX) continued its bullish run and surged by more than 500 points during intraday trade on Thursday.
According to the PSX website, the KSE-100 index was trading at 58,799.23 points at 11:30am, up 600.47 or 1.03 per cent from the previous close of 58,198.76 points.
Maintaining its bullish streak from the preceding week, the benchmark index hit yet another all-time high and crossed the 58,000 barrier a day earlier.
The inflow of dollars from the International Monetary Fund (IMF) expected next month supported the momentum along with upbeat economic indicators on the current account deficit and home remittances.
Speaking to Dawn.com today, Raza Jafri, the head of equities at Intermarket Securities Ltd, attributed the rally to the resumption of foreign buying.
He forecasted that with the government focused on the economy, interest rates were expected to decrease going forward.
With “risks seemingly under control, the bull run in Pakistan equities can extend and potentially turn into a multi-year rally”, Jafri added. He emphasised that banks, energy and construction sectors in particular appeared attractive.
Meanwhile, Equity Sales Head Faraz Rizvi highlighted that the prices remained relatively low despite the surge.
“Moving from a market cap of $20 billion to now approaching $30 billion, the market’s price-to-earnings multiples still lag behind regional counterparts,” he said.
Rizvi went on to say that the declining oil prices were expected to be beneficial for the Pakistan economy. “On the technical side, the market is currently in an overbought scenario, suggesting a potential for a minor short-term correction,” he added.
More to follow
Source: dawn.com
