May 15, 2024

PSX maintains bullish momentum on economic optimism

Benchmark Index retreats after touching 75,115.32 level driven by hopes of easing inflation, rate cut, and IMF talks

May 15, 2024

PSX maintains bullish momentum on economic optimism

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Pakistan Stock Exchange (PSX) maintained its bullish momentum on Wednesday with the benchmark KSE-100 Index touching another all-time high of 75,000 level, mainly on hopes of easing inflation, rate cuts, and IMF talks.

The market opened on a positive note posting over 500 points in the early hours of trade jumping the KSE-100 Index to its highest level of 75,115.32 points at around 10:30 am.

At the day close, the benchmark index posted a mere 132.79 points or 0.18% high from the previous close of 74,531.19.

Still attractive stock valuations, expectations of more foreign inflows, and starting talks with the International Monetary Fund (IMF) on a new loan program added to the bullish sentiment.

The market has surged 80% over the past year, and it is up 16.1% year-to-date after an IMF loan program helped the government avert a debt default last summer.

On Tuesday, the MSCI index added a Pakistani bank, National Bank of Pakistan, to the MSCI frontier market index. Its shares rose 1.6pc on Wednesday, outperforming the benchmark index.

Pakistan last month completed a short-term, $3 billion IMF program, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.

An IMF mission is in Pakistan to discuss the financial year 2025 budget, policies, and reforms under a potential new program.

Wall Street bank Citi expects Pakistan to reach a four-year agreement with the IMF worth up to $8 billion by end-July and recommends going long on the country’s 2027 international bond.

PSX