Intraday Report: KSE-100 inches closer to all-time high

March 27, 2024 (MLN): The Pakistan Stock Exchange's (PSX) benchmark KSE-100 index gained 514.98 points or 0.78% to trade near its all-time highs during intraday trading on Wednesday, buoyed by political stability, expectations of interest rate cuts and fresh inflows from the International Monetary Fund (IMF).

The index traded near 66,421.26 as of 11:12am.

To note, after hitting a record high of around 67,000 in mid-December, the index experienced a significant correction, dropping as much as 12.4% from its highs.

The rebound back close to its record highs has been fueled by better than expected conclusion of general elections, expectations for interest rate cuts and fresh inflows from the IMF following the Staff-Level Agreement for the final tranche of $1.1 billion.

The local currency has also remained stable and hovers around a five-month high.

Meanwhile, the government’s efforts to restructure and privatize Pakistan International Airlines Corp (PSX: PIAA) have also played a due role in boosting the investors’ sentiments.

PIA's stock price has seen a surge of 7.93x over the past year, while the year-to-date (YTD) increase stands at 3.87x.

“The significant progress on privatization, coupled with the potential new deal with the IMF, has propelled the benchmark KSE 100 index close to its all-time high closing of 66,427, seen in December 2023,” said Mohammad Sohail, CEO Topline Securities.

“Additionally, foreign fund buying, as indicated by NCCPL data, continues to bolster share prices, which are currently trading at an attractive PE of less than 4,” he added.

To note, the KSE-100 has gained 24,969 points or 60.23% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 3,970 points, equivalent to 6.36%.

Copyright Mettis Link News