PSX continues bullish trend, gains 1,274 points

KSE-100 Index gains 1,274.55 points, closing at 101,357.32.

The KSE-100 Index wrapped up Friday's trading session with a solid gain of 1,274.55 points, or 1.27%, closing at 101,357.32 points.

The index experienced fluctuations throughout the day, with an intraday high of 101,496.17 points, and a low of 99,822.61 points.

A total of 454.63 million shares were traded on the index. Among the 100 companies listed in the KSE-100 Index, 71 saw an increase in their stock value, 26 saw a decline, and 3 remained unchanged.

Yesterday, the Pakistan Stock Exchange (PSX) surged past the 100,000-point mark for the first time ever on Thursday, marking a historic milestone that highlighted strong investor confidence in the country's economy, driven by improving macroeconomic fundamentals.

The benchmark KSE-100 Index crossed the 100,000-point threshold just days after the market had faced turbulence. The milestone depicted the resilience of investor sentiment and the market's ability to rebound swiftly, traders had said.

Messages of congratulations poured in from all corners of the country soon after the share market's historic rise. "The stock market's surge reflected the confidence of the business community and investors in the government's economic policies," Prime Minister Shehbaz Sharif had conveyed to the nation.

In a special statement, the PSX celebrated the remarkable performance, delivering a 142% return over the past 17 months. "This achievement reflected growing investor confidence, improved fiscal and monetary policies, and an increasingly conducive economic environment," it had read.

The day had begun 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 that year, reflecting a period of robust growth.

Although the bourse briefly retreated to 99,600 points by mid-morning due to profit-taking, momentum had quickly returned in the afternoon, and the market had pushed past 100,000 again. At the end of the trading, the benchmark index had advanced by 813.52 points, or 0.82%, to 100,082.77.

"KSE-100 Index crossing the 100,000 mark was a proud moment for Pakistan Stock Exchange and a testament to the trust of our investors and the progress of the nation's economy," PSX Managing Director and CEO Farrukh H Sabzwari had said.

"While this milestone demonstrated the potential of our capital market, our focus was on driving sustainable growth and working towards increasing the depth of our market and ensuring it supported the broader economic objectives of the country," he had added.

"Expanding retail investor participation was a key priority, as it would foster inclusivity and resilience, enabling the market to grow alongside the nation's economy." He had stressed that the journey ahead also required broadening the base of listed companies, particularly from underrepresented sectors.

He had urged the stakeholders to use this momentum to pave the way for long-term economic and financial success. "The PSX aimed 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 had said.

Sindh Governor Kamran Tessori visited the PSX to congratulate the bourse management. Punjab Chief Minister Maryam Nawaz had 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 Arif Habib Limited (AHL), had 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 had noted that "from fewer than 1,000 points in the late 1990s to reaching 100,000 today, the market had surged 100-fold." Over the past 25 years, "it had 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 stabilization, 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 had hit a new all-time high as investors speculated 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 Arif Habib Corp, had written 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, had acted as catalysts for the new record, he had added. Topline Securities had 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 had sustained its bullish momentum, reaching an intra-day high of 100,540. Investor confidence had been 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 had collectively added 629 points to the index, Topline had noted.

Leading the gains were Pakistan Petroleum Limited (+7.32%), Habib Bank (+4.4%), and Oil and Gas Development Company Limited (+2.83%), which had contributed significantly to the rise. However, banking stocks such as United Bank Limited (-3.52%) and MCB Bank Limited (-4.14%) had weighed down the index.

The index had finally unlocked the 100,000-point level, with 75 shares advancing and 25 declining, AHL had written in its report. "Now, the focus shifted to how far the KSE-100 could extend above this historic level in the days ahead," AHL had added.

The traded volume had also surged to 1,165 million shares, according to Mubashir Anis Naviwala, an analyst at JS Global. Leading the activity had been Bank of Punjab, K-Electric, Bank Makramah Limited, Pace Pakistan Limited, and Hascol Petroleum Limited, he had said.

During the day, shares of 452 companies had been traded – 290 went up, 118 fell, and 44 were unchanged. The total value of traded shares had been Rs39.8 billion. The Bank of Punjab had been the volume leader with 179.3 million shares, gaining Rs1 to close at Rs8.85.

It had been 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 had sold shares worth Rs1.39 billion, according to the NCCPL.