PSX Sees Notable Uptick, Surges by 400 Points in Midday Trading

The Pakistan Stock Exchange (PSX) had a bullish trading session on Tuesday, as the benchmark KSE-100 index surged past the 57,000-point mark, indicating a positive atmosphere among investors.

During the course of the trading day, at around 11:20 a.m., the KSE-100 index was recorded at 57,539.71 points. This marked an increase of 461.75 points, or 0.81%, compared to its previous closing value at 57,077.96 points, as per the data monitored.

This upward movement in the market has closely followed the recent record high that the index experienced last week, pushing beyond 57,000 points. This rally was largely fuelled by the successful conclusion of a staff-level agreement between Pakistan and the International Monetary Fund (IMF).

The aforementioned agreement is a precursor to the release of a second installment of loan funds amounting to $700 million, which is contingent on the official sanction by the IMF's Executive Board, with a meeting provisionally expected to take place on December 7.

In terms of market valuation, Raza Jafri from Intermarket Securities expressed that even after the market's bullish performance, valuations are considered attractive. He expressed a generally optimistic perspective regarding Pakistani equities.

Ali Malik, CEO of First National Equity, associated the gainful momentum of the current trading session with a brighter economic forecast going forward. Particularly, he cited high market anticipation for the IMF board's nod to the second loan installment as a pivotal factor.

He pointed out that recently reported figures suggest a decrease in Pakistan's trade deficit due to an uptick in exports. This development has made shares more enticing, especially given their current low price-to-earnings ratio. Malik also noted the significant rise in asset replacement value, making the pricing of the market, particularly in the case of major industries, quite favorable.

PSX, IMF, Economy