ISLAMABAD, JULY14: As per a report published by Arif Habib Limited (AHL), the Pakistan Stock Exchange (PSX) index is expected to reach 109,000 by June 2025, following the successful implementation of a staff-level agreement with the International Monetary Fund (IMF).
According to AHL, the markets will benefit from the new bailout program since it provides a clear path for economic policies and gives investors the framework they need to make well-informed judgments. Furthermore, concerning sectoral impacts, the paper examines how energy, one of the IMF’s top goals, will help E&P, OGMCs, and the power industry in particular.
According to the analysis, in an environment of sluggish economic development, the underutilized sectors such as cement, autos, steel, and pharmaceuticals would be relieved. It is therefore anticipated that these industries’ levels of utilization and profitability will rise. The index target set by the report for June 2025 is 109,000, suggesting a 36% potential increase from current levels.
With a dividend yield of almost ten percent, the KSE-100 is now trading at a PER of 4.2x (2025), which is lower than the last five-year average PE of 6.0x. OGDC, PPL, MCB, UBL, MEBL, LUCK, FCCL, DGKC, MLCF, FFC, FFBL, PSO, HUBC, ILP, NML, and INDU are the stocks that the research recommends.
According to AHL, the new IMF program will foster an atmosphere that is conducive to financial inflows from friendly nations, bilateral partners, and other multilateral organizations.It is anticipated that these inflows will assist lessen any external pressures and boost the nation’s foreign exchange (FX) reserves. Along with structural improvements for the next three years, the program will also bring much-needed clarity and confidence regarding the economic agenda.
