Islamabad, November 23, 2023 (PAKONOMY): In a remarkable turn of events, the Pakistan Stock Exchange (PSX) witnessed a robust bullish run, maintaining its position above the 58,000 level. The KSE-100 index, according to data from the PSX website, closed at an impressive 58,899.84 points, marking a substantial increase of 701.08 points or 1.2% from the previous close.
This surge, extending from the preceding week, reached a new milestone as the benchmark index surpassed the 58,000 barrier a day earlier. Key factors driving this extraordinary market performance include the anticipation of upcoming International Monetary Fund (IMF) funds and positive economic indicators, particularly in the current account deficit and home remittances.
Raza Jafri, Head of Equities at Intermarket Securities Ltd, attributed the ongoing rally to the resumption of foreign buying. Jafri expressed optimism about the future, forecasting a potential decrease in interest rates as the government maintains its focus on economic stability.
With risks seemingly under control, Jafri emphasized the likelihood of the bull run evolving into a multi-year rally. He identified the banking, energy, and construction sectors as particularly attractive areas for investment.
Faraz Rizvi, Equity Sales Head, highlighted that despite the surge, market prices remained relatively low. He pointed out that the market’s price-to-earnings multiples still lag behind regional counterparts, indicating room for further growth.
Rizvi also commented on the positive impact of declining oil prices on the Pakistani economy. However, he cautioned about the market being in an overbought scenario on the technical side, suggesting a potential for a minor short-term correction.