KARACHI, Pakistan : Pakistan’s benchmark share index touched a lifetime high on Wednesday, breaching the key level of 75,000, with analysts highlighting hopes for a decline in inflation and interest rate cuts, as well as still attractive stock valuations.
The index is trading at 75,013 points at 0531 GMT, up 0.7 per cent, after hitting an intraday high of 75,115 points. It has surged 80 per cent over the past year, and it is up 16.1 per cent year-to-date.
On Monday, the index closed at a record high of 73,822, up 1 per cent.
The market is picking up steam due to an anticipated decline in inflation to 13.5 per cent for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of Arif Habib Limited.
Investors are also buoyed by optimism surrounding discussions on an International Monetary Fund financing program and the economic roadmap ahead, Habib said.
The market is trading at an “appealing” price to earning ratio (PE) of 4.1 times, representing a 46 per cent discount compared to the mean PE of the last five years, he added.
