PSX eyes 160,000 points on IMF talks and Saudi investment optimism
KSE-100 closes at 158,037 after hitting a record 159,337
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
The Pakistan Stock Exchange (PSX), which closed at a record high last week, might cross the 160,000-points mark this week on optimism stemming from the government’s talks with the International Monetary Fund (IMF).
The talks would pave the way for the third tranche that would shore up the country’s foreign exchange reserves and keep the rupee stable.
The KSE-100 index posted a bullish close this week, reaching a high of 159,337 points before settling at 158,037, up 2%.
The week opened with the IMF signaling that its upcoming review mission will assess whether the government’s fiscal measures are sufficient to address prevailing challenges due to floods.
Another factor that improved market sentiment was the defense pact between Pakistan and Saudi Arabia that might lead to Saudi investment in Pakistan’s agricultural and mining sectors.
The strengthening of ties is likely to boost foreign investment.
An analyst from Spectrum Securities said that sentiments remained broadly positive and the market is moving into new territories driven by domestic liquidity as reflected in inflows from mutual funds, insurance, companies and individuals.
While foreigners and domestic banks have been big sellers recently, their selling has not made any dent.
Moreover, leverage exposure—presently near PKR 91 billion—has played a significant role in driving up share prices of companies. However, the size is not big enough compared to free float so it would not raise any alarm bells for the market.
At the same time, during rollover week, it does lead to volatility in share prices, and high leverage stocks witness some correction, the analyst said.
Recent trends indicate the KSE-100 index has been finding support near its 10 days moving averages and is staying well above its 30DMA, as normally witnessed in bull run. 10 DMA is presently near 156,179, while 30DMA at 151,480.
On the upside, previous week’s high 159,337 is immediate resistance, followed by 162,000, according to the analyst.
The PKR appreciated slightly by 0.03%, closing at 281.46 against the USD.
Overall, the market closed at 158,037 points, up by 3,598 points or 2.33%.
The sectors that contributed positively were cement (553 points), banks (517 points), technology (508 points), power (439 points), and E&Ps (406 points).
Scrip-wise positive contributions came from HUBC (442 points), BOP (394 points), LUCK (266 points), SYS (245 points), and ENGROH (218 points).
Whereas, scrip-wise negative contributors were UBL (66pts), HBL (47pts), HMB (31pts), and PKGP (26pts).
An analyst from Arif Habib Ltd. said investor sentiment in the upcoming week will remain closely tied to the upcoming round of review talks with the IMF, scheduled for September 25.
Furthermore, the ongoing flooding situation is also being monitored for its potential impact on market sentiment.
The KSE-100 index is currently trading at a forward PER of 7.8x (2026) against its 15-year average of 8.59x, offering a compelling dividend yield of 5.8% versus the historical average of 6.13%.
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