In a first, KSE-100 shoots past 71,000 after 524-point gain

The Pakistan Stock Exchange (PSX) closed at a fresh record high on Monday as its benchmark KSE-100 Index closed above 71,000 for the first time in history.

The market did not react heavily to talks related to the central bank’s monetary policy announcement next week, and the KSE-100 witnessed a strong buying spree in Monday’s session that led to an intra-day high of 71,861.18, followed by some correction before the end of the session.

At close, the benchmark index settled at 71,433.46, up by 523.56 points or 0.74%.

Across-the-board buying was witnessed in sectors including automobile assemblers, cement, chemical, commercial banks, oil & gas exploration companies and OMCs trading in the green.

In a key development, it was reported that the International Monetary Fund (IMF) has not yet included Pakistan on the agenda of its executive board meetings scheduled till May 1.

According to the Fund website, the IMF issued the schedule of the executive board meeting set to be held on April 29 and May 1.

Pakistan is hoping for approval from the executive board which would pave the way for the country to receive funds of around $1.1 billion as its final tranche of the $3-billion SBA signed last year in June 2023.

“Government’s formal loan request to IMF and good March quarter dividends (are) helping share prices that, despite the rally, are trading at a forward-looking Profit to Earnings ratio of 4,” said Mohammed Sohail, CEO Topline Securities, sounding confident that upside was still available despite the record surge.

Pakistan stocks have rallied in recent months as the country successfully draws curtain on the $3-billion Stand-By Arrangement with the IMF, and prepares ground for a larger, longer programme with the lender. Developments on foreign relations front have helped ease sentiment that had been rattled earlier due to record inflation and low economic growth.

Globally, the Asian stocks recovered some losses on Monday and bond yields rose as fears of a wider Middle East conflict ebbed, with investors gravitating back towards riskier assets. Gold and the safe-haven dollar pulled back from near their peaks, and crude oil prices declined as the potential for a major supply disruption waned.

Iran said on Friday that it had no plan to retaliate following an apparent Israeli drone attack within its borders, which in turn followed an unprecedented Iranian missile and drone attack on Israel days before. MSCI’s broadest index of Asia-Pacific shares rose 0.93%, retracing some of the 1.8% drop from Friday, after news of the Israeli strike emerged.

Meanwhile, the Pakistani rupee registered a marginal decline, depreciating 0.01% against the US dollar in the inter-bank market on

Monday. At close, the local unit settled at 278.33, a loss of Re0.02 against the greenback, as per the State Bank of Pakistan (SBP).

Volume on the all-share index increased to 655.20 million from 475.83 million a session ago. The value of shares rose to Rs31.25 billion from Rs23.22 billion in the previous session.

Habib Bank was the volume leader with 48.15 million shares, followed by Pak Refinery with 30.50 million shares, and Pak Elektron with 28.60 million shares.

Shares of 389 companies were traded on Monday, of which 217 registered an increase, 140 recorded a fall, while 32 remained unchanged. The benchmark KSE-100 index surged by 595.18 points and closed at its new highest ever level of 70,909.90 points.