PSX hits historic high, crosses 72,000 points

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The Pakistan Stock Exchange (PSX) achieved a new milestone as it crossed the 72,000 mark during the early morning trading on Wednesday.

During the intraday trading, the benchmark KSE-100 index gained 976.49 points or 1.37% to reach 72,335.89 points, up from the previous close of 71,359.41 points.

The benchmark KSE-100 index gained 854.19, or 1.2 per cent, to stand at 72,213.59 at 10:33am from the previous close of 71,359.40 points.

Analysts observed that this was yet “another record high at the PSX”, he attributed the rally to being “mainly led by institutional buying”.

“After record current account surplus, investors are now expecting a big fall in April CPI (Consumer Price Index) that may result in a cut in interest rate in coming months,” they added.

The KSE-100 index had breached the key 71,000 level on Monday.

Analysts explained: “The prospect of declining rates renders stocks more appealing, potentially prompting a shift from fixed income to equities over the next year.”

Analysts noted that some stocks still offered dividend yields of up to 20pc, which he said could further increase as earnings grow.

“In contrast, investments in government securities entail significant reinvestment risk. Opting for a one-year T-bill could result in locking in a considerably lower rate upon maturity of the current bond,” they highlighted.

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