PSX records modest gains, up nearly 300 points

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The benchmark index of the Pakistan Stock Exchange (PSX) recorded gains on Tuesday, staying above the 57,000-point level.

According to the PSX website, KSE-100 index closed at 57,371.58 points, up 293.62 or 0.51 per cent from the previous close of 57,077.96 points.

Last week, the benchmark of representative shares hit an all-time high and crossed 57,000 points on the back of the staff-level agreement reached between Pakistan and the International Monetary Fund (IMF).

The signing of the staff-level agreement paves the way for the disbursement of the second loan tranche amounting to $700 million, subject to the approval of the IMF’s Executive Board — which is tentatively scheduled for Dec 7.

Speaking to Dawn.com today, Intermarket Securities’ head of equity Raza Jafri said valuations remained cheap despite the market’s recent rally.

“Given the top-down outlook is reasonably sanguine, the outlook on Pakistan equities remains positive,” he added.

Meanwhile, First National Equity chief executive Ali Malik attributed today’s rally to a positive economic outlook in the near future. He said there were high expectations regarding the IMF board’s approval for the second loan tranche.

“Numbers show Pakistan’s trade deficit has decreased, which means that exports have increased,” Malik said, adding that shares were trading at a very low price-to-earnings ratio.

“On top of that, asset replacement value has tremendously risen … so the market is very cheap, especially big industries,” he added.