The bulls’ position was further bolstered by positive corporate results, particularly in the sectors with a high index weight.
Increase in KSE-100 Index
According to Arif Habib Limited (AHL), the benchmark KSE-100 index increased by 560 points to 47,242.9 points at 12:10pm, the highest level since November 8, 2021.
The trading firm reported that due to the staff-level settlement with the IMF for the $3 billion Standby Settlement (SBA), the market had increased by 5,751 factors (+13.9%).
“The momentum is optimistic after the IMF SBA facility as a result of the valuation has elevated,” AHL Head of Analysis Tahir Abbas instructed a private news channel.
In comparison to the final financial crisis (2008), when the bottom was 3.9x, he said that the KSE-100 is currently trading at a PER of 3.7x.
According to Abbas, the market is still alluring, which is why the upbeat trend is still present. The market is expected to grow further, according to predictions.
Financial market expert in the present season of consequences, Saad Ali said that the IMF’s confidence and prognosis for improved macro stability have matched strong business results.
“…many banks and corporations have shocked with their earnings and payouts regardless of a troublesome macro backdrop,” Saad Ali added.
Late last month, Pakistan negotiated a short-term agreement with the IMF, allowing the country to avoid default and strengthen its foreign exchange reserves.
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