KARACHI: The Pakistan Stock Exchange (PSX) rocketed during Wednesday’s intraday session, with its benchmark KSE-100 index surging more than 850 points as Islamabad met the final pre-condition for reviving the International Monetary Fund’s (IMF) loan programme.
Encouraging financial results, rupee strengthening versus the US dollar, and a projected drop in oil import bills fueled the optimistic trend, as investors took new holdings.
Dr Khaqan Hassan Najeeb, an economist and former consultant to the federal ministry of finance, said that investors must remember that corporate profits are the true driver of share prices.
“However, more lately, the nation’s macro fundamentals have been dominating in pushing the PSX down,” he added, stressing that if the country returns to an IMF programme, investor confidence may return to the PSX.
“Valuations are cheap, and experienced investors see that this is a good moment to purchase at low P/E ratios, firms with decent profits, and competent management.”
The benchmark KSE-100 index ended the day at 41,068.87 points, up 877.26 points or 2.18 percent.
In its post-market analysis, Arif Habib Limited said that the market saw a bull run after clarification on the IMF programme resume, resulting in the rupee strengthening versus the US dollar.
“Investors delighted as the KSE-100 rose by 1,016 points throughout the session, providing bulls an advantage to continue active throughout the day. Huge quantities were seen on the main board “It was noticed.
Banks (+201.2 points), cement (+174.2 points), exploration and production (+92.2 points), oil marketing businesses (+48.4 points), and fertiliser (+39.8 points) all contributed to the performance.
Alpha Beta Core CEO Khurram Schezad said that after Pakistan receives the IMF’s $1.2 billion, multilateral inflows would be unlocked, followed by bilateral and friendly nations.