KARACHI: The Pakistan Stock Exchange (PSX) soared during Wednesday’s intraday trade as its benchmark KSE-100 index surged over 850 points after Islamabad completed the last pre-condition to revive the International Monetary Fund’s (IMF) loan programme.
Encouraging financial results, rupee appreciation against the US dollar and an expected decline in oil import bills added fuel to the bullish trend as investors assumed fresh positions.
Economist and former adviser to the federal ministry of finance Dr Khaqan Hassan Najeeb said that investors must remember company earnings are the real driver of share prices.
“But more recently, the macro fundamentals of the country have been dominant in driving the PSX lower,” he said, noting that as the country inches back to an IMF programme, investor confidence can return to PSX.
“Valuations are low and astute investors know it is a reasonable time to buy at low P/Es, companies with good earnings and solid management.”
At close, the benchmark KSE-100 index closed at 41,068.87 points with an increase of 877.26 points or 2.18%.
Sectors contributing to the performance included banks (+201.2 points), cement (+174.2 points), exploration and production (+92.2 points), oil marketing companies (+48.4 points), and fertiliser (+39.8 points).
Alpha Beta Core CEO Khurram Schezad said that once Pakistan gets IMF’s $1.2 billion, there will be an unlocking of multilateral inflows, followed by bilateral and friendly countries.