PSX continues bullish run, crosses 56,000 milestone
The benchmark index of the Pakistan Stock Exchange (PSX) continued its momentum from the preceding session on Monday and crossed the 56,000 milestone.
According to the PSX website, the KSE-100 index traded in the green throughout the day, making rapid gains. The index eventually closed at 56,523.58 points, up by 1132.22 or 2.04 per cent from the previous close of 55,391.36.
Arif Habib Limited, in a post on X (formerly Twitter), said the index soared to an “all-time high”.
Last week, the local bourse hit a significant milestone as its benchmark surpassed the 55,506-point mark, fuelled by the first loan review by the International Monetary Fund (IMF) and a decrease in cut-off yields for Pakistan Investment Bonds.
Speaking to Dawn.com today, JS Global Head of Equity Sales Faran Rizvi said the KSE-100 index was nearing a new high, potentially encountering profit-taking, despite maintaining an overall bullish trend.
“A confirmation above 56,500 could trigger a new rally, aiming for levels between 59,000 and 60,000,” he added.
However, Rizvi said prudent investors were advised to engage in cautious buying at the current levels and implement strict stop-loss measures.
Topline Securities CEO Mohammed Sohail attributed today’s rally to “bullish sentiments as investors expect IMF review to be completed positively within this week”.
He added that foreign buying on Friday ahead of the MSCI review was also helping sentiments.
Morgan Stanley Capital International (MSCI) is a global provider for investment data. It provides a number of stock indexes globally for investors to help them make informed choices.
Capital market expert Mohammed Saad Ali also said that the IMF talks seemed concluding without an issue and pushback kept the market upbeat.
Meanwhile, FRIM Ventures Chief Investment Officer Shahbaz Ashraf was of the opinion that attractive valuation triggered the run.
“The market’s liquidity has also been fueled by robust dividend announcements, buybacks, and institutional investments,” he told Dawn.com. However, Ashraf pointed out that stock valuations were not close to their past peaks, signifying room for growth.