Continuing its bull run from the preceding sessions, the benchmark index of the Pakistan Stock Exchange (PSX) hit yet another all-time high on Friday and crossed the 59,000 milestone.
According to the PSX website, the KSE-100 index was trading at 59,402.82 point at 10am, up 502.98 or 0.85 per cent from the previous close of 58,899.84.
The benchmark of representative shares has recorded steady gains throughout the week, thanks to the improving macroeconomic outlook following the successful review of the International Monetary Fund (IMF) programme.
The IMF funds, expected to be issued next month after the lender’s executive board board meeting, are a second tranche of the nine-month bailout package. This will bring total disbursements under the $3bn package, approved in July, to almost $1.9bn.
Speaking to Dawn.com, Raja Jafri, head of equities at Intermarket Securities Ltd, attributed today’s rally to the return of foreign institutional buying.
“Despite the recent sharp rally, valuations remain attractive. The government has due focus on the economy and risks seem well-managed for now,” he said.
He added that the finalisation of the IT export policy has galvanised the tech sector in particular.
Mohammed Sohail, chief executive of Topline securities, was of the opinion that the stock market was catching up on the losses of the last few years.
“The finance minister’s remarks that the government is looking to get $1.5 billion after the IMF tranche is helping sentiments,” he added.
Syed Faran Rizvi, head of equity sales at JS Global, said, “The Pakistan market’s future performance hinges on the crucial indicator of declining oil prices.”
He added, “From a technical standpoint, the upside target for the index stays consistent at 59,294.”
However, he cautioned that on the downside, support is anticipated in the range of 58,450-58,700 levels, with a subsequent level at 58,246 — a breach below this point might trigger a corrective trend.
More to follow
Source: dawn.com
