The bullish run continued at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index crossed the 54,000 level for the first time in history during intra-day trading on Tuesday.
At 11:25am, the benchmark index was hovering at 54,247.74, an increase of 387.38 points or 0.72%.
On Monday, the KSE-100 index was up by 737 points, as it settled at 53,860.37 on the back of a strong buying spree. This was the highest closing level for the KSE-100.
A mixed pattern was witnessed among index-heavy sectors on Tuesday, with commercial banks, oil and gas exploration companies and OMCs trading in the green, while automobile assemblers, chemical and fertilisers trading in the red.
Experts attributed the bullish trend at the bourse to improved macroeconomic indicators, as the country’s current account deficit declined to $8 million in September 2023 as compared to the current account deficit of $360 million in the same month in 2022, on account of lower imports.
The CPI-based inflation in Pakistan also lowered to 26.9% in October.
The market is optimistic that the ongoing International Monetary Fund (IMF) review of the Stand-By Arrangement (SBA) will be successful, paving the way for further inflows into the country.
“There is just no stopping the KSE-100 at the moment, with the market anticipating a successful IMF review and commencement of monetary easing within the next few Monetary Policy Committee (MPC) meetings,” said Intermarket Securities Limited in a note on Tuesday.
“Periodic profit taking may come from time to time, but in general we expect a significant valuation rerating across the next 12 months,” it added.