Bulls take PSX to a new-high, gains of over 500

(MANEND NEWS): The Pakistan Stock Exchange’s benchmark KSE-100 index traded in the green in early morning trade on Wednesday and crossed the 54,000 barrier.

At closing time, the index gained 525.69 points, or 0.98 per cent, closing at 54,261.42 points from the previous 53,735.73.

The KSE-100 index has gained more than 30pc this year, with a turnaround in fortunes coming after the IMF approved the loan programme in July to avert a sovereign debt default.

Mohammed Sohail, chief executive of Topline Securities, said, “Another high touched by KSE-100 index reaching 54400 during the trading this morning.”

He said the positive sentiment was due to expectations building that interest rates may come down sooner than expected after a fall in global oil prices, which will help in easing inflation in Pakistan.

Meanwhile, JS Global Head of Equity Faran Rizvi said the market had entered “uncharted territory”, was technically being overbought and potentially in need of a pause at current levels.

However, he cautioned that the stock valuations remain remarkably low, and investors were actively seeking opportunities that have yet to fully materialise.

“Stock valuations have declined to just one-third of the index’s peak as observed back in May 2017,” Rizvi highlighted.

“To provide a specific example, the price-to-earnings multiple — a measure of a company’s share value relative to its per-share earnings — stood at 12 in May 2017 when the index was around 52,800 points. Presently, this multiple has dwindled to a mere four, even as the benchmark hovers around 54,500 points,” he added.

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