The Pakistan Stock Exchange’s KSE-100 index maintained its bullish trend on Friday, soaring to an “all-time high” and crossing the 53,000 barrier.

The benchmark stock index struck a record intra-day high of 53,263.07, rising 1.15 per cent from the previous close of 52,656.76, before settling back slightly. It was the highest since May 25, 2017.

The index closed at 53,123.03, up 466.27 or 0.89 per cent from the previous close.

According to Arif Habib Limited, the market soared to “unprecedented all-time high levels” and surged past all the previous records, setting a “new era of financial excellence”.

Mohammed Sohail, chief executive of Topline Securities, told Dawn.com that the reduction in economic and political uncertainties could take the market to a new high.

“In the economic realm, a long-term and good relationship with the International Monetary Fund, economic reforms and sustainability of debt repayment are required to reduce the malaise,” he said.

However, Sohail cautioned: “Don’t forget this is an index (total return) with dividends and bonuses. Valuations are still low.”

Despite political and economic difficulties, the KSE-100 index has gained more than 30pc this year, with a turnaround in fortunes coming after the IMF approved a $3 billion loan programme in July to avert a sovereign debt default.

However, share market recovery has a long way to go. Adnan Sheikh, an independent economist, said the market capitalisation was around $27 billion, having been about $100 billion in 2017.

He said the steep depreciation of the rupee, as the country slid into a balance of payments crisis, was largely to blame for the drop in market cap.

“The market in dollar terms is still undervalued. The KSE100 index is at around 20,000 points if compared to the dollar value in 2017,” Sheikh said.

Investors also took heart from the arrival of an IMF team in Pakistan for talks on the release of the next tranche of around $700 million by December.

“We are in compliance with the IMF structural benchmarks for this review,” said Shahbaz Ashraf, Chief Investment Officer at FRIM Ventures, a Karachi-based investment company.

Ashraf said that a successful IMF review will help bring external inflows vital for disinflation and stability in the rupee, which recovered from record lows in September.

Investors expect an imminent cut in the central bank’s policy interest rate, currently set at a record high 22pc, as inflation appears to have peaked, having slowed to 26.9pc year-on year in October.