Pakistan Stock Exchange (PSX) KSE-100 index Monday crossed 62,500 points limestone for the first time in history after gaining 1,000 points.
The PSX 100 index reached 62,461 points in comparison to the 61,691.25 closing on Friday.
Despite Pakistan's political and economic difficulties, the index has gained more than 48% this year, after the International Monetary Fund (IMF) approved a $3 billion loan programme in July to avert a sovereign debt default.
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Some analysts believe the market is welcoming a successful staff-level agreement for the second tranche of funds under the current IMF Standby Arrangement, along with an expected disbursement of the funds in December and other foreign exchange inflow from multilateral institutions.
"Even though the market is trading at an all-time high, the valuation of the market is still attractive as the KSE100 index is currently trading at a price-to-earnings multiple of 4.5 times as compared to the last 5-years average PE multiple of 6 times," said Tahir Abbas, head of research at Arif Habib Limited.
Companies' strong profitability and dividend payouts are also enticing investors confidence, he added.
On November 28, Pakistan's benchmark share index (KSE) breached 60,000 to trade at an all-time high of 60,500.61 points, data on the Pakistan Stock Exchange website showed.
Investors expect an imminent cut in the central bank's policy interest rate, currently set at a record high 22%. Inflation appears to have peaked, having slowed to 26.9% year-on-year in October.
Liquid foreign exchange reserves
It is pertinent to note that the total liquid foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $77 million to $7.257 billion during the week ended November 24, 2023, while total liquid foreign exchange reserves held by the country stood at $12.392 billion and net foreign exchange reserves held by commercial banks stood at $5.135 billion.
