The Pakistan Stock Exchange’s (PSX) has set a new milestone with the benchmark KSE-100 Index crossing the 118,000-point mark during intra-day trading on Thursday
However, as trading continued, shares saw a slight dip and reached 117,911.83.
Investor optimism drove the index to a high of 118,367.81 before settling near the current mark. 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 Rs11.31 billion. The previous day’s close stood at 117,008.08.
The KSE-100 Index has shown resilience in recent sessions, supported by solid corporate earnings and favourable developments in the economic landscape.
PSX kicks off new year with surge to record
Pakistan Stock Exchange (PSX) on Wednesday started the new year on a strong note as it rose to a record high, driven by extensive buying that pushed the KSE-100 index up by nearly 1,900 points.
The market's positive performance was powered by increasing confidence of local and institutional investors, which reflected their trust in Pakistan's economy.
Besides, the rally came after monetary policy easing and relative political stability. Expectations of a further reduction in the State Bank of Pakistan's (SBP) policy rate, lower inflation and rupee stability also aided market sentiment.
Arif Habib Corp MD Ahsan Mehanti stated that stocks closed higher in an earnings season rally as investors eyed reduction in the SBP's key policy rate amid thin inflation, robust economic indicators and rupee stability following disbursements under the IMF programme.
"Surging exports, an external account surplus and higher global oil prices played the role of catalysts in bullish close at the PSX," he added.
At the end of trading, the benchmark KSE-100 index posted a surge of 1,881.18 points, or 1.63%, and settled at 117,008.08.
Topline Securities highlighted in its report that the KSE-100 index surged to a historic 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, it said.
Fauji Fertiliser, Lucky Cement, Hub Power, Habib Metropolitan Bank and Millat Tractors added 936 points to the index gains, Topline wrote.
Arif Habib Limited (AHL) mentioned in its review that a fresh all-time high was hit for the KSE-100 index in the first session of the new year.
A total of 67 shares rose, while 30 fell with Fauji Fertiliser Company (+3.49%), Lucky Cement (+7.92%) and Hub Power (+3.11%) contributing the most to the index gains.
On the other side, Dawood Hercules Corporation (-2.54%), Mehmood Textile Mills (-7.54%) and Service Industries (-2.46%) were the biggest index drags, it said.
Meanwhile, the Consumer Price Index (CPI) for December 2024 rose 4.1%, which marked the lowest increase since April 2018. This takes average inflation for the first half of FY25 to 7.2% compared to 28.8% in the same period of last year.
Also, the government released a new five-year economic plan, targeting 6% growth and $50 billion worth of exports, AHL added.
JS Global analyst Muhammad Hasan Ather observed that the KSE-100 surged 1,881 points to 117,008 owing to improved macro indicators, specifically due to low inflation expectations. The positive sentiment was particularly evident in leveraged stocks, he said.
With monetary easing and increased political stability, the outlook for the stock market remained upbeat, indicating continued investor confidence and potential growth in the coming months, Ather added.
Overall trading volumes decreased to 956.3 million shares against Tuesday's tally of 1.24 billion.
Shares of 462 companies were traded. Of these, 258 stocks closed higher, 161 fell and 43 remained unchanged.
Cnergyico PK was the volume leader with trading in 72 million shares, losing Rs0.19 to close at Rs7.66. It was followed by Pakistan International Bulk Terminal with 62.8 million shares, losing Rs0.08 to close at Rs9.30 and The Bank of Punjab with 45.4 million shares, gaining Rs0.15 to close at Rs10.96.
During the day, foreign investors sold shares worth Rs333.1 million, the National Clearing Company of Pakistan reported.
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