PSX achieves historic breakthrough, surpassing 80,000 mark M Haris

KARACHI: During the past week, the Pakistan Stock Exchange (PSX) witnessed a bullish trend, with the KSE-100 index breaking through the significant barrier of 80,000 points, reaching an all-time high.

Investor optimism was fueled by expectations of a new IMF assistance package for Pakistan, alongside positive economic indicators such as a substantial increase in State Bank reserves and a notable reduction in the trade deficit.

The market saw gains exceeding 1,750 points throughout the week, driven by upbeat sentiment ahead of the corporate earnings season and robust dividend expectations. However, concerns over a potential downgrade by FTSE Russel and consolidation around the 80,000 level restrained further bullish momentum.

Early in the week, the index surged nearly 380 points, influenced by favorable economic reports and sector-specific news. Momentum continued the following day, supported by expectations of strong corporate earnings and moderate inflation rates.

Wednesday marked a historic milestone as PSX broke through the 80,000 mark, spurred by optimism about dividend payouts and progress towards an IMF loan agreement. Despite mid-session pressures the next day, the market closed marginally higher as investors awaited further developments regarding the IMF agreement.

The week concluded with minor losses, as apprehensions about the FTSE Russel downgrade and consolidation persisted around the 80,000 mark. The KSE-100 index closed at 80,213 points, reflecting a weekly increase of 2.3%.

According to Shagufta Irshad of JS Global, the market capitalization of KSE-100 rose by 2% and average daily trading volumes and values also saw substantial increases week-on-week.

Economic highlights included a CPI of 12.6% for June 2024, contributing to an annual average of 24% for FY24. Meanwhile, State Bank reserves reached a 23-month high of $9.4 billion, bolstered by significant inflows from multilateral agencies.

Looking ahead, discussions with the IMF are scheduled for mid-July, aiming to finalize terms of a new loan agreement, which could further influence market dynamics.