The Pakistan Stock Exchange (PSX) benchmark index surged over 700 points and reached over 58,000 points on Wednesday. This is after the index hit an all-time high last week, crossing 57,000 points. The surge is attributed to positive data indicating a significant reduction in the current account deficit and anticipation of a rate cut. Analysts also mentioned the upcoming IMF board approval for a tranche on Dec 7, which could lead to a $700 million disbursement next month. The market’s price-to-earnings ratio is still at unbelievably low levels, hovering around 3-4 times. The recovery of the rupee and successful compliance with most quantitative targets are also contributing to the positive trend. The CEO of Alpha Beta Core noted that clarity on upcoming elections and the IMF staff-level agreement is also contributing to the positive trend. The Topline Securities Ltd CEO remarked that although the index had reached 58,000, prices were still relatively low. He also mentioned the fast recovery at the Pakistan Stock Exchange, which has gone from a market cap of $20 billion to now approaching $30 billion. This shows that the recovery has only just begun.

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By hassani

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