Stock market hits new peak above 56,500 level

Bulls dominated the trading floor at the Pakistan Stock Exchange (PSX) for the third consecutive session on Monday, leading the benchmark index to hit another all-time high. Arif Habib Corporation analyst Ahsan Mehanti said upbeat data on exports and home remittances, along with a fall in bond yields in the latest auction of Pakistan Investment Bonds, triggered the rally that culminated in share prices rising to a record high. Speaking to Dawn, Alpha Beta Core Ltd CEO Khurram Schehzad said the continuous rise in the KSE-100 index is likely to endure at least in the near future unless a surprise event sets the share price surge back. Unlikely events that may derail the north-bound journey of the KSE-100 index include the Election Commission of Pakistan failing to hold the general election in February 2024 — a move that’ll surely create uncertainty among investors, said Mr Schehzad. High remittances amid policy rate cut hopes fuel rally He attributed the short-term recovery in share prices to the “on track” review of the Stand-by Arrangement (SBA) with the International Monetary Fund (IMF), even though technical and policy level talks have yet to take place. In addition, the announcement of the election date and the expected cuts in the interest rates 2024 onwards have also contributed to positive market sentiments, he said. However, sustainability in the medium to long term still depends on structural reforms in energy, debt, state-owned enterprises and taxation, he added.