PSX reaches new highs, crosses 59,000 milestone in intraday trading

According to the PSX website, the KSE-100 index stuck 59,402.82 points at 10am, up 502.98 or 0.85 per cent from the previous close of 58,899.84.

The benchmark of representative shares has recorded steady gains throughout the week, thanks to the improving macroeconomic outlook following the successful review of the International Monetary Fund (IMF) programme.

The IMF funds, expected to be issued next month after the lender’s executive board board meeting, are a second tranche of the nine-month bailout package. This will bring total disbursements under the $3bn package, approved in July, to almost $1.9bn.

Speaking to Dawn.com today, Raja Jafri, head of equities at Intermarket Securities Ltd, attributed the rally to the return of foreign institutional buying.

“Despite the recent sharp rally, valuations remain attractive. The government has due focus on the economy and risks seem well-managed for now,” he said, adding that the completion of the IT export policy had galvanised the tech sector particularly.

Mohammed Sohail, chief executive of Topline securities, was of the opinion that the stock market was catching up on the losses of the last few years.

“The finance minister’s remarks that the government is looking to get $1.5 billion after the IMF tranche is helping sentiments,” he added.

Meanwhile, JS Global equity sales head Syed Faran Rizvi said the Pakistani market’s future performance hinges on the crucial indicator of declining oil prices.

“From a technical standpoint, the upside target for the index stays consistent at 59,294,” he pointed out.

However, Rizvi cautioned that on the downside, support was anticipated in the range of 58,450-58,700 levels, with a subsequent level at 58,246 — a breach below this point might trigger a corrective trend.