PSX crosses 66,000 first in 2024 with ease, up over 500 points

Bullish momentum continued at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 gained over 500 points during trading on Wednesday to cross the elusive 66,000 level, which has proven to be a major resistance point.

At 11:10am, the benchmark index was hovering at 66,421.43, an increase of 515.16 points or 0.78%. Earlier, the index hit an intra-day high of 66,519.96.

Buying was witnessed among index-heavy sectors including automobile, cement, commercial banks, and refinery.

Experts said improved sentiment among investors is driving the buying trend.

“Good progress on privatisation and likely new deal with International Monetary Fund (IMF) helping KSE 100 reach its all time high closing of 66,427,” said Mohammed Sohail, CEO Topline Securities, in a note.

“Moreover, foreign fund buying as shown by NCCPL data also supports share prices, which are trading at an attractive PE of less than 4,” he added.

Moreover, in a separate development, the Board of Directors (BoD) of Pakistan International Airlines Corporation Limited (PIACL) took a significant step towards the privatisation of the national carrier by approving a Scheme of Arrangement (SoA) in its 83rd meeting.

This decision, aimed at restructuring the airline, was sanctioned along with its ancillary modalities and is set to be filed with the Securities and Exchange Commission of Pakistan (SECP).

At close on Tuesday, PSX witnessed another bullish session as its benchmark KSE-100 Index gained 381 points to settle near 66,000.

Globally, Japanese stocks advanced amid a weakening yen on Wednesday while Chinese stocks slipped, with overall regional trading lacking strong direction in a holiday-shortened week that ends with a key reading of US inflation.

Japan’s Nikkei gained 0.93% to 40,775.62 as of 0155 GMT, heading back towards the all-time high of 41,087.75 reached last Friday. Hong Kong’s Hang Seng and mainland Chinese blue chips each lost about 0.4%, reversing gains from the previous session.

Overall, MSCI’s broadest index of Asia-Pacific shares advanced 0.11%, but that flipped to a 0.22% decline if Japanese shares were removed.