Introduction
In a remarkable display of financial prowess, the benchmark index of the Pakistan Stock Exchange (PSX) soared to unprecedented heights, breaching the 59,000-point milestone. As the KSE-100 index closed at 59,086.35 points, marking a 0.32% increase from the previous close, investors and analysts alike are witnessing a robust bull run that has persisted through consecutive trading sessions.
Macro-economic Outlook Boosts Market
The consistent upward trajectory of representative shares on the PSX is attributed to the optimistic macro-economic outlook following the successful review of the International Monetary Fund (IMF) program. The anticipation of IMF funds, set to be disbursed as the second tranche of the nine-month bailout package, totaling almost $1.9 billion, has injected renewed confidence into the market.
Insights from Market Experts
Raja Jafri – Head of Equities at Intermarket Securities Ltd
Speaking exclusively to media, Raja Jafri, the head of equities at Intermarket Securities Ltd, sheds light on the driving forces behind the rally. Despite the recent surge, Jafri emphasizes that valuations remain attractive. He attributes the market’s resilience to the return of foreign institutional buying, indicating a positive sentiment towards Pakistan’s economic stability. Jafri also highlights the government’s focused approach to the economy and well-managed risks.
Mohammed Sohail – Chief Executive of Topline Securities
Mohammed Sohail, the chief executive of Topline Securities, believes that the current bullish trend is a recovery from past losses. The finance minister’s statement about the government seeking $1.5 billion after the IMF tranche has particularly contributed to uplifting market sentiments.
Tech Sector Galvanized
One notable aspect contributing to the market surge is the completion of the IT export policy, which has galvanized the tech sector. Analysts, including Jafri, see this as a pivotal development influencing the current rally.
Future Outlook and Cautionary Notes
While the market continues to aim for new highs, JS Global equity sales head Syed Faran Rizvi provides insights into the technical aspects. Rizvi points out that the upside target for the index remains consistent at 59,294. However, he cautions that support is anticipated in the range of 58,450-58,700 levels. A breach below 58,246 might trigger a corrective trend, according to Rizvi.