PSX faces dip after brief surge past 118,000 points

PSX opened strong, reaching 118,735.09, before the KSE-100 index dropped to 116,745.03 points during intra-day trading

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The Pakistan Stock Exchange (PSX) opened the trading week with a strong surge, pushing the KSE-100 index to a new all-time high of 118,735.09 points during intra-day trading, following which the market faced a slight pullback, with the index dipping as low as 116,300.17 points.

By noon, the KSE-100 index stood at -896.05c points or 116,745.03 points, marked a 0.76% decrease during the day.

Despite this pullback, trading activity remained strong, with 134.7 million shares exchanged, amounting to a turnover value of approximately PKR 9.74 billion.

The previous close for the PSX was recorded at 117,586.98 points, reflecting a modest loss in the current session, following an otherwise positive start to the week.

Earlier, the Pakistan Stock Exchange (PSX) experienced a strong bullish week, with the KSE-100 index hitting a record high of 117,587 points, marking a 5.6% week-on-week (WoW) gain.

This positive momentum was driven by improved investor sentiment, fueled by favorable macroeconomic indicators such as December 2024’s inflation drop to 4.1%, the lowest in over six years, and strong sector performance, especially from banks, fertilizers, and exploration & production companies.

Average daily trading volumes surged by 31% WoW, reaching 1,045 million shares. However, there were concerns about the trade deficit rising to $2.4 billion and a Rs 386 billion tax shortfall.

Despite these challenges, a new five-year economic plan, "Uraan Pakistan", aimed at sustainable economic growth, bolstered investor confidence.

Analysts project continued growth for 2025, with expectations of the KSE-100 index reaching 160,000 points if political and economic reforms stabilize.

The PSX saw volatility throughout the week, including notable gains on Monday (+3.5%) and Wednesday (+1,881 points).

By the last trading day, the market rose past 117,500 points, driven by strong earnings projections and an anticipated SBP policy rate cut.

The week closed with 6,236 points gained, making the PSX the best-performing market in the world in terms of US dollar returns.

Sector Contributions:

• Banks: +13,847 points
• Fertilizers: +11,169 points
• Exploration & Production (E&P): +10,012 points

Inflation data, trade balance, and government measures contributed to the bullish market. Analysts foresee continued market growth, especially if economic reforms and political stability are maintained.