Karachi, November 22, 2023 – The Pakistan stock market achieved a historic milestone today, reaching an unprecedented 58,000 points, signaling a positive turn for the nation’s economic landscape.
The benchmark KSE-100 index, monitored on the Pakistan Stock Exchange (PSX), concluded the day at an impressive 58,199 points. This marked a substantial increase of 827 points from the previous day’s closing of 57,372 points, illustrating the market’s resilience and positive momentum.
Analysts’ Insights
Experts at Ismail Iqbal Securities highlighted the continuation of the equity market’s bullish trend, with today’s surge propelling the index beyond the 58,000 mark for the first time in history. Despite a slight decrease in trading volumes from 356 million shares in the previous session to 257 million shares today, the overall market sentiment remains optimistic.
Topline Securities Limited analysts noted a notable upswing in Pakistan’s stock market, attributing the surge to an 827 points increase, equivalent to a 1.44% rise. The market closed the day at 58,199 points, reflecting the anticipation of improved economic conditions.
Valuation and Discounts
Despite the recent rally, the Pakistan market currently boasts a Price-to-Earnings (PE) ratio of 3.1x based on 2024 estimated earnings. This figure is significantly lower than the 5-year and 10-year average PEs of 6x and 8x, respectively. Remarkably, Pakistan’s PE is even lower than countries that have experienced economic defaults, such as Ghana and Sri Lanka. Furthermore, the market continues to trade at a substantial discount to regional indices, standing at a 68% discount to MSCI EM PE of 13.4x and a 56% discount from MSCI FM PE of 9.8x.
Sectoral Performance
Throughout the day, key sectors such as Exploration and Production (E&P), Banks, and Cement made substantial contributions to the market’s positive trajectory. Notable contributors included MEBL, BAHL, LUCK, PSO, and PPL, collectively bolstering the index by 352 points. However, some counterbalancing occurred, with THALL, ABL, and DAWH offsetting gains and resulting in a minor loss of 27.72 points.
Trading Highlights
WTL took the lead in trading volume for the day, with 50.3 million shares changing hands. The overall market experienced robust activity, recording a total trading volume of 594 million shares, amounting to a value of Rs 22 billion.
As Pakistan’s stock market hits the historic 58,000 points milestone, investors and market participants are optimistic about the sustained positive momentum, driven by improved economic conditions and favorable sectoral contributions. The achievement underscores the resilience and potential of Pakistan’s financial markets on the global stage.
