Tag: corporate profits

  • PSX hits new high amid optimistic economic trends

    PSX hits new high amid optimistic economic trends

    The Pakistan Stock Exchange (PSX) soared to yet another record high on Wednesday, buoyed by positive economic indicators.

    A decrease in inflation sparked expectations of monetary easing, seen as a significant boost to commercial activity and, consequently, corporate earnings.

    Closing at 67,756.03 points, the benchmark KSE-100 index surged by a substantial 869.77 points or 1.30 per cent.

    Investors were particularly drawn to the cyclical sector, with significant investments flowing into cement and steel companies.

    This interest was largely fueled by reports indicating a rise in both local and international cement dispatches for March.

    However, sectors such as transport, technology, communication, and commercial banking also garnered attention from investors.

    Additionally, the government’s privatisation initiatives, particularly the proposed sale of State-Owned Enterprises (SOEs), injected optimism into the market.

    There’s a prevailing belief that these companies could experience improved profitability and efficiency under private ownership.

    Notably, on Tuesday, the Privatisation Commission initiated the process of selling off Pakistan International Airlines (PIA), inviting expressions of interest (EOIs) from potential buyers.

  • Pakistan Stock Exchange may surpass 60,000 level soon

    Pakistan Stock Exchange may surpass 60,000 level soon

    The benchmark index of the Pakistan Stock Exchange (PSX) marked a record-breaking bullish run on Monday, closing just shy of the 60,000 mark without surpassing it. 

    There is an anticipation that, given the current pace, the stock market might breach the 60,000 level soon. 

    According to the PSX website, the KSE-100 index showed marginal gains until noon. However, at 1:11 pm, it experienced a sudden surge that persisted until closing time, reaching 59,811.34, up by 724.99 points (1.23%) from the previous day’s 59,086.35.

    In the preceding Friday session, the KSE-100 index had set a new record at 59,100 points, attributed to strong corporate profits, reduced economic volatility, the successful conclusion of an IMF staff-level deal, expectations of a stable post-poll government, and optimism about an early reversal of monetary tightening. This led to a rapid increase in share prices over the last three months.

    Regarding the current rally, Raza Jafri, head of equity at Intermarket Securities, noted, “The banking sector is driving the rally, aligning with the improving economic outlook.” He emphasised that banks, offering a combination of high dividend yields and attractive valuations, have consistently been favoured by foreign investors.

    Shahbaz Ashraf, chief investment officer at FRIM Ventures, a Karachi-based investment company, attributed the rally to “cheap valuations and an influx of liquidity.”