PSX surges to all-time high, crosses 53,000 milestone

Karachi: The Pakistan Stock Exchange (PSX) hit a new all-time high after a six-and-a-half year hiatus, overcoming the psychological barrier of 53,000 points on Friday following bumper profits posted by companies listed on the exchange  transaction.

The benchmark PSX KSE 100 index hit an intraday high of 53,263 points, up 1.15% or 605 points at 10:55 a.m. Friday from Thursday’s close of 52,656.76 points.

As a reminder, the index reached its previous closing record of 52,876.46 points on May 24, 2017.

Amid intraday profit-taking, the day’s highest gain fell to 455 points, with the index hovering at 53,111 points at the time of Friday prayers and the lunch break.

Market chatter suggests the index hit a new all-time high as most listed companies reported record profits in the quarter ending September 2023, despite the economic slowdown. These companies include commercial banks and oil and gas exploration companies.

On the other hand, the first relatively smooth assessment of the country’s economy by the International Monetary Fund (IMF) under its $3 billion loan program began on Thursday and supported market sentiment.

Furthermore, the announcement of election dates by the Election Commission of Pakistan (ECP) in consultation with President Arif Alvi also encouraged investors to buy stocks at increased prices.

Arif Habib Limited said on X “PSX market hits all-time high.”

The market, for the first time in history, has achieved a remarkable milestone of reaching an all-time high, surpassing previous records and ushering in a new era of financial excellence. Topline Securities CEO Muhammad Sohail said on X that after a long period of six and a half years, Pakistan’s benchmark stock index has reached an all-time high.

Remember this is an index (total return) with dividends and bonuses. “Valuation remains low, at four times earnings, compared with a PE (price/earnings ratio) of 12 in 2017.”