PSX 100 index hits historic 62500 milestone

KSE-100 index of the Pakistan Stock Exchange (PSX) after obtaining 1,000 points today has crossed the historic 62,500 points milestone for the first time.

The closing value of the PSX 100 index on Friday was 61,691.25. However, it has reached 62,461 points today. The index has increased by more than 48% this year despite Pakistan’s political and economic challenges.

History in the making at #PakistanStockExchange! The market soared to new heights, breaking the 62k points barrier for the first time ever.

The 100 index surged by an impressive 851 points, reaching a remarkable 62,542 points.#SamaaTV #PSX #Economy pic.twitter.com/MZyJqLo1BB
— SAMAA TV (@SAMAATV) December 4, 2023

This increase in the PSX index comes after the International Monetary Fund’s (IMF) approval in July of a $3 billion bailout program to prevent a sovereign debt default.

Arif Habib Limited is a research firm on stock exchange trading and investment banking. Arif Habib Limited observed that the KSE-100 dropped from all-time highs. Even though it increased by an amazing 16.5% month over month. Up until the end of January, the seasonality element is still favorable for increased stock prices, with a target price of 65k.

Arif Habib Limited noted that despite a whopping 16.5% month-on-month rise, the KSE-100 came down from all-time highs. “Seasonality factor remains favourable for higher stock prices into the end of January with the target at 65k,”

Article by @etribune https://t.co/Fwwpx9uyuJ
— Arif Habib Limited (@ArifHabibLtd) December 4, 2023

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Tahir Abbas said the KSE100 index is currently trading at a price-to-earnings multiple of 4.5 times compared to the last five years’ average PE multiple of 6 times. It indicates that even if the market is at an all-time high, the valuation of the market is still appealing.

He added that the high profitability of companies and dividend payouts are also luring investors. Tahir Abbas is the head of research at Arif Habib Limited.

According to some analysts, the market is reacting favorably to a successful staff-level agreement for a second round of funding under the current IMF Standby Arrangement, as well as other foreign exchange inflow from multilateral organizations and the expected December delivery of the funds.