KARACHI, Nov 28 (Reuters) - Pakistan's benchmark share index on Tuesday breached 60,000 to trade at an all-time high of 60,500.61 points, data on the Pakistan Stock Exchange website showed.
Investors expect an imminent cut in the central bank's policy interest rate, currently set at a record high 22%.
Inflation appears to have peaked, having slowed to 26.9% year-on-year in October.
Despite Pakistan's political and economic difficulties, the index has gained more than 48% this year, after the International Monetary Fund (IMF) approved a $3 billion loan programme in July to avert a sovereign debt default.
Some analysts believe the market is welcoming a successful staff level agreement for the second tranche of funds under the current IMF Standby Arrangement, along with a expected disbursement of the funds in December and other foreign exchange inflow from multilateral institutions.
"Despite the fact that the market is trading at an all-time high, the valuation of the market is still attractive as KSE100 index is currently trading at price-to-earnings multiple of 4.5 times as compared to the last 5-years average PE multiple of 6 times," said Tahir Abbas, head of research at Arif Habib Limited.
Companies' strong profitability and dividend payouts are also enticing investors confidence, he added.
Reporting by Ariba Shahid; editing by Sudipto Ganguly and Nivedita Bhattacharjee
Source: Reuters