The Pakistan stock exchange violated the barrier of 154,000 points in intra -trade in the middle of the continuous optimism of investors on Friday.
The KSE-00 index rose 1,615.05 (1.06 percent) to stand at 154,280.77 since the last closure of 152,665.72 at 3:24 pm the market had opened with a positive note, winning more than 1,000 points at 11 am
Finally, the index closed to 154,277.19, with a gain of 1,611.47 points (1.06pc) compared to the previous session.
Awais Ashraf, research director at AKD Securities, said Dawn.com: “Investors are still optimistic amid the improvement of macroeconomic conditions, particularly the strengthening of rupee.
“In addition, limited yields on alternative roads such as real estate, fixed income, basic products and currency markets make actions a more attractive option,” he added.
The PSX has witnessed an upward trend in recent days, despite concerns about the risks for the economy due to the floods ongoing, with the Pakistan business forum estimating losses in crops worth bills of rupees.
Today’s profits for a sixth consecutive day follow the Government’s Treasury Law auction, which raised RS491Bn against an objective of 400 billion rupees.
Yousuf M. Farooq, research director of Chase Securities, said: “The sharing market currently reflects the optimism phase of the investment cycle, with selective areas that exhibit signs of incipient euphoria.
“While the valuations have been normalized in relation to the deep undervaluation witnessed two years ago, they are no longer at the exceptionally attractive levels that prevailed during that period,” he added.
However, with respect to the risks related to floods, he said: “What is important, the market capacity to look beyond recent floods is a concern, since it indicates a possible undesary of macroeconomic and social risks.”
Although he points out that the valuations cannot be described as “stretched”, FAROOQ said they do not offer the safety margin available before.
“For retail investors, this context requires prudence. Instead of trying to have short -term fluctuations, a more sustainable approach would be gradually assigned through a systematic investment in mutual funds or build a diversified portfolio of companies that are well understood,” he advised.
“The long -term trajectory of the creation of wealth in the actions remains intact, but requires discipline, patience and an appreciation of the underlying risks instead of speculative positioning.”
