The Pakistan Stock Exchange (PSX) has set a new milestone with the KSE-100 benchmark index crossing the 118,000 point mark during intraday trading on Thursday.
However, as trading continued, the stock saw a slight drop and hit 117,911.83.
Investor optimism drove the index to a high of 118,367.81 before settling near the current level. The day’s low so far has been recorded at 117,065.97.
Trading activity is robust, with a total volume of 142.83 million shares exchanged, valued at Rs 11.31 billion. The previous day’s close was at 117,008.08.
The KSE-100 index has shown resilience in recent sessions, supported by strong corporate earnings and favorable developments in the economic outlook.
PSX starts the new year with a record rise
The Pakistan Stock Exchange (PSX) on Wednesday started the new year on a strong note as it hit an all-time high, driven by extensive buying that pushed the KSE-100 index up by almost 1,900 points.
The positive market performance was driven by the growing confidence of local and institutional investors, which reflected their confidence in Pakistan’s economy.
Furthermore, the rebound occurred after the easing of monetary policy and relative political stability. Expectations of further reduction in State Bank of Pakistan (SBP) policy rate, lower inflation and rupee stability also helped market sentiment.
Arif Habib Corp CEO Ahsan Mehanti said stocks closed higher in an earnings season rebound as investors eyed a cut in the SBP’s key policy rate amid weak inflation, economic indicators solidity and stability of the rupee after disbursements under the IMF programme.
“Increased exports, external account surplus and higher global oil prices played the role of catalysts for the PSX’s bullish close,” he added.
At the end of trading, the benchmark KSE-100 index recorded an increase of 1,881.18 points, or 1.63%, and closed at 117,008.08.
Topline Securities highlighted in its report that the KSE-100 index rose to an all-time high of 117,008, reflecting a notable gain of 1,881 points. The market maintained its upward trajectory, supported by strong buying from local institutions, he said.
Fauji Fertiliser, Lucky Cement, Hub Power, Habib Metropolitan Bank and Millat Tractors added 936 points to the index’s gains, Topline wrote.
Arif Habib Limited (AHL) mentioned in its review that the KSE-100 index hit a new all-time high in the first session of the new year.
A total of 67 stocks rose while 30 fell, with Fauji Fertilizer Company (+3.49%), Lucky Cement (+7.92%) and Hub Power (+3.11%) contributing the most to the gains. of the index.
On the other hand, Dawood Hercules Corporation (-2.54%), Mehmood Textile Mills (-7.54%) and Service Industries (-2.46%) were the biggest drags on the index, it said.
Meanwhile, the Consumer Price Index (CPI) for December 2024 rose 4.1%, marking the lowest increase since April 2018. This brings the average inflation for the first half of FY25 to FY7 .2% compared to 28.8% in the same period last year.
Additionally, the government launched a new five-year economic plan, targeting 6% growth and exports worth $50 billion, AHL added.
JS Global analyst Muhammad Hasan Ather noted that the KSE-100 rose 1,881 points to 117,008 due to improving macro indicators, specifically due to low inflation expectations. Positive sentiment was particularly evident in leveraged stocks, he said.
With monetary easing and greater political stability, the outlook for the stock market remained optimistic, indicating continued investor confidence and potential growth in the coming months, Ather added.
Total trading volumes decreased to 956.3 million shares from Tuesday’s figure of 1.24 billion.
Shares of 462 companies were traded. Of them, 258 stocks closed higher, 161 fell and 43 were unchanged.
Cnergyico PK was the volume leader with trading of 72 million shares, losing Rs 0.19 to close at Rs 7.66. It was followed by Pakistan International Bulk Terminal with 62.8 million shares, losing Rs 0.08 to close at Rs 9.30 and The Bank of Punjab with 45.4 million shares, gaining Rs 0.15 to close at 10.96 rupees.
During the day, foreign investors sold shares worth Rs 333.1 million, the National Clearing Company of Pakistan reported.
