According to IMS Research, the KSE100 was red-hot in November, returning 17% (+15% in US$) to close at 60,531pts, easily surpassing the previous high of c 53,000pts set in 2017. Daily turnover rebounded to nearly US$100mn.

Foreign institutional buying was a major driver, accelerating after a successful IMF review. Ongoing macroeconomic stabilization was accompanied by further clarity on politics, with February 8th set as the election date.

With the top-down seemingly in control, investor attention turned to the strong corporate profitability and attractive valuations. This rerating theme remains intact as 2024 approaches with forward P/E still below 4x, much lower than the long-term mean of 7.5x. We remain positive on Pakistan equities.