PSX hits another milestone amid monetary easing, upcoming IMF tranche

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 KSE-100 index gained over 800 to reach 58,203.85 during the intraday trading, up from yesterday’s close of 57,371.59, according to the PSX website. 

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.

A day earlier, the stocks reached another high as investors were optimistic about the prospects of receiving the first loan tranche from the global lender. 

The market was buoyed by reports that the IMF board meeting to approve a staff-level agreement on the $700 million loan tranche under the standby agreement for Pakistan could take place in the first week of December, they added.