The Pakistan Stock Exchange (PSX) surged past the 100,000-point mark for the first time ever on Thursday, a historic milestone that highlighted the strong investor confidence in the country's economy, driven by improving macroeconomic fundamentals.
The benchmark KSE-100 Index crossed the 100,000-point mark just days after the market faced turbulence. The milestone depicted the resilience of investor sentiment and the market's ability to rebound swiftly, traders said.
Messages of congratulations poured in from all corners of the country soon after the share market's historic rise. "Stock market's surge reflected the confidence of the business community and investors in the government's economic policies," Prime Minister Shehbaz Sharif conveyed to the nation.
In a special statement, the PSX celebrated the remarkable performance of delivering 142% return over the past 17 months. "This achievement reflects growing investor confidence, improved fiscal and monetary policies, and an increasingly conducive economic environment," it read.
The day began with a strong 1% gain, propelling the KSE-100 to breach the 100,000 threshold right at the opening bell. This milestone capped an extraordinary rise from around 40,000 points earlier this year, reflecting a period of robust growth.
Although, the bourse briefly retreated to 99,600 points by mid-morning due to profit-taking, momentum quickly returned in the afternoon, and the market pushed past 100,000 once again. At the end of the trading, the benchmark index advanced by 813.52 points, or 0.82% to 100,082.77.
"KSE-100 Index crossing the 100,000 mark is a proud moment for Pakistan Stock Exchange and a testament to the trust of our investors and the progress of nation's economy," PSX Managing Director and Chief Executive Officer (CEO) Farrukh H Sabzwari said.
"While this milestone demonstrates the potential of our capital market, our focus is on driving sustainable growth and working towards increasing the depth of our market and ensuring it supports the broader economic objectives of the country," he added.
"Expanding retail investor participation is a key priority, as it will foster inclusivity and resilience, enabling the market to grow alongside the nation's economy." He stressed that the journey ahead also required broadening the base of listed companies, particularly from underrepresented sectors.
He urged the stakeholders to use this momentum to pave the way for long-term economic and financial success. "The PSX aims to improve Pakistan's market capitalisation-to-GDP ratio, further complementing economic growth and increasing the market's ability to attract long-term investments," he said.
Sindh Governor Kamran Tessori visited the PSX to congratulate the bourse management. Punjab Chief Minister Maryam Nawaz remarked that PSX had become the world's best performing equity market as a new history had been created.
Shahid Ali Habib, the CEO of the Arif Habib Limited (AHL), commented that the 100,000 points milestone reflected a robust economic recovery and consistent performance across major sectors, driving investor confidence.
In an early morning note, Topline Research CEO Mohammad Sohail noted that "from fewer than 1,000 points in the late 1990s to reaching 100,000 today, the market has surged 100-fold". Over the past 25 years, "it has weathered countless ups and downs, along with waves of optimism and pessimism".
Several key factors had been attributed to the KSE-100's exceptional growth, such as rupee stabilisation, transition to a more comprehensive support package from the International Monetary Fund (IMF), stronger performance in major sectors, and positive sentiments after easing of monetary policies.
"Stocks hit a new all-time high as investors speculate on a major SBP [State Bank of Pakistan] rate cut, following a sharp decline of up to 70 basis points (bps) in the government T-bill yields at a recent SBP auction," Ahsan Mehanti, the managing director of the Arif Habib Corp wrote in his daily review.
The finance ministry's thin inflation forecast at 5.8-6.8% for November 2024, along with easing of political noise and rupee stability, acted as catalysts for the new record, he added. Topline Securities highlighted that stocks closed at an all-time high of 100,083, recording a gain of 814 points, or 0.82%.
On the trading floor, the market sustained its bullish momentum, reaching an intra-day high of 100,540. Investor confidence was bolstered by declining T-Bill yields, reduced political uncertainty, and a rally in leveraged companies supported by falling the Karachi Inter-Bank Offered Rate (KIBOR).
Major contributors to the index's surge included Pakistan Petroleum, Habib Bank, Oil and Gas Development Company, Lucky Cement, and TRG Pakistan, which collectively added 629 points to the index, Topline noted.
Leading the gains were Pakistan Petroleum Limited (+7.32%), Habib Bank (+4.4%), and Oil and Gas Development Company Limited (+2.83%), which contributed significantly to the rise. However, banking stocks such as United Bank Limited (-3.52%) and MCB Bank Limited (-4.14%) weighed down the index.
The index finally unlocked the 100,000-point level, with 75 shares advancing and 25 declining, the AHL wrote in its report. "Now, the focus shifts to how far the KSE-100 can extend above this historic level in the days ahead, the AHL added.
The traded volume also surged to 1,165million shares, according to Mubashir Anis Naviwala, an analyst at the JS Global. Leading the activity, were Bank of Punjab, K-Electric, Bank Makramah Limited, Pace Pakistan Limited, and Hascol Petroleum Limited, he said.
During the day, shares of 452 companies were traded – 290 went up, 118 fell and 44 unchanged. The total value of traded shares was Rs39.8 billion. The Bank of Punjab was the volume leader with in 179.3 million shares, gaining Rs1 to close at Rs8.85.
It was followed by K-Electric with 64.9 million shares, gaining Rs0.25 to close at Rs5.40 and Bank Makramah Limited with 60.3 million shares, gaining Rs0.05 to close at Rs2.73. During the day, foreign investors sold shares worth Rs1.39 billion, according to the NCCPL.
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