PSX gains over 400 points in intraday trade

KARACHI – The Pakistan Stock Exchange (PSX) benchmark index displayed gains, remaining above the 57,000-point threshold on Tuesday.

As reported by the PSX website, the KSE-100 index was trading at 57,539.71 points by 11:20 am, marking an increase of 461.75 points or 0.81 percent from its previous close at 57,077.96 points.

The previous week witnessed the benchmark index for representative shares hitting an all-time high, surpassing the 57,000-point mark following the staff-level agreement reached between Pakistan and the International Monetary Fund (IMF).

The agreement’s signing paved the way for the release of the second loan tranche, totaling $700 million, subject to the IMF Executive Board’s approval, tentatively scheduled for December 7.

Ali Malik, Chief Executive at First National Equity, attributed the day’s rally to an optimistic economic forecast in the near term. He highlighted the high expectations regarding the IMF board’s green light for the second loan tranche.

Malik emphasized the decrease in Pakistan’s trade deficit, indicating a rise in exports. He pointed out that shares were trading at a notably low price-to-earnings ratio, further indicating that the market, particularly prominent industries, presented a lucrative opportunity due to a substantial increase in asset replacement value.

Raza Jafri, Head of Equity at Intermarket Securities, said that despite the recent market rally, valuations remained favourable. He expressed a positive outlook for Pakistan equities, considering a reasonably positive top-down perspective.