PSX makes history as KSE-100 index crosses 100,000 milestone

The Pakistan Stock Exchange (PSX) made history on Thursday as the benchmark KSE-100 index surged past the significant 100,000-point mark, reflecting investor optimism and a positive start to the trading session.

At 09:42AM, the benchmark KSE-100 index climbed by 947.32 points, or 0.95%, reaching 100,216.57 points, up from its previous close of 99,269.25 points.

This milestone comes as a remarkable recovery for the market, which experienced a sharp drop of over 3,500 points on Tuesday, following violent protests in Islamabad that had unsettled investor confidence.

The trading volume for today has been strong, with over 154 million shares exchanged, and a total value of over Rs 4.5 billion.

The market’s positive momentum follows yesterday’s strong performance, which saw the index reclaim five key levels—95,000, 96,000, 97,000, 98,000, and 99,000 points—before closing at 99,269.25 points.

Investor confidence remains high, driven by factors such as easing political tensions, optimistic economic indicators, and strong sectoral performances.

As the PSX continues to show resilience and growth, it reflects the broader potential for Pakistan's economic development.

On Wednesday, 100-index skyrocketed nearly 4,700 points – the biggest single-day surge in the bourse's history.

A day ago, the market was jolted by massive sell-off, plunging over 3,500 points on the back of growing political unrest. The spectacular rebound, which took the KSE-100 index to record high above 99,200 points, could be attributed to investor sentiment, buoyed by the easing of political tensions following the end of Pakistan Tehreek-e-Insaf's (PTI) protest in Islamabad.

A strong performance by the banking sector boosted investor confidence, while other key sectors such as automobile, oil and gas, oil marketing companies (OMCs) and power generation also played a significant role in driving the rally.

"Stocks closed at a new all-time high, led by across-the-board interest in shares, after PTI ended its protest in the capital, easing political noise and security concerns," Arif Habib Corp MD Ahsan Mehanti wrote in his brief commentary.

Upbeat economic indicators, speculation about further decrease in inflation and rupee stability were the key catalysts that drove the bullish activity, he added.

At the end of trading, the benchmark KSE-100 index jumped 4,695.09 points, or 4.96%, to a historic high at 99,269.25.

Topline Securities wrote in its review that bulls staged a remarkable comeback as the KSE-100 index soared to the intra-day high of 4,975 points, recording the largest single-day gain in history. The impressive rally followed previous day's sharp downturn, with the index closing at 99,269, up 4,695 points.

The positive sentiment was largely driven by the opposition party's decision to end protest in the capital late last night, it said.

This shift marked a complete reversal from Tuesday's turmoil, where the KSE-100 experienced its biggest single-day drop, plunging by 3,500 points.

In terms of market capitalisation, Tuesday's decline of Rs480 billion was followed by an exceptional increase of Rs526 billion on Wednesday, marking the second-highest single-day surge, Topline said.

The trading floor witnessed robust buying activity, with the index-heavy banking sector leading the charge. Other significant contributors included automobile assemblers, oil and gas exploration companies, OMCs and power generation firms.

Top contributors to the index's upward trajectory were Fauji Fertiliser Company, Habib Bank Limited, Systems Limited, Bank Alfalah and Pakistan Petroleum, which cumulatively added 1,546 points, Topline said.

Arif Habib Limited (AHL) stated in its review that stocks experienced a massive recovery across the board, with the KSE-100 holding firm at the 94,000 support level and rallying 4.96%, getting closer to the 100,000 mark.

Ninety-three shares rose while seven fell with Fauji Fertiliser Co (+9.1%), Habib Bank (+10%) and Systems Limited (+7.82%) contributing the most to the upside, it mentioned.

On the flip side, Meezan Bank (-1.5%), Pakistan Services (-5.73%) and Faysal Bank (-4.3%) were the major drags on the index.

The support at 94,000 proved pivotal, reinforcing the upward momentum and setting the stage for continuous bullish trend, AHL added.

JS Global analyst Mubashir Anis Naviwala wrote that the PSX rebounded strongly, recovering from previous day's panic-driven sell-off. The KSE-100 index surged 4,975 points intra-day, erasing all losses from the previous session.

Investor activity picked up significantly, fuelled by easing political tensions, with robust gains across the board, he said.

Renewed investor optimism, supported by improving macroeconomic indicators and declining fixed-income yields, signalled a sustained bullish outlook for the equity market, the analyst added.

Overall trading volumes decreased to 1.06 billion shares against Tuesday's tally of 1.1 billion. The value of shares traded during the day was Rs39.6 billion.

Shares of 453 companies were traded. Of these, 356 stocks closed higher, 52 fell and 45 remained unchanged.

The Bank of Punjab was the volume leader with trading in 114.97 million shares, gaining Rs1 to close at Rs7.85. It was followed by Hascol Petroleum with 106.3 million shares, losing Rs1 to close at Rs12.59 and K-Electric with 91.2 million shares, gaining Rs0.5 to close at Rs5.15.

During the day, foreign investors sold shares worth Rs1.88 billion, according to the NCCPL.