Karachi, November 1, 2024 – The Pakistan Stock Exchange (PSX) witnessed a robust bullish surge on Friday, as the KSE-100 index rallied to close with a substantial gain of 1,893 points, marking one of the strongest performances in recent weeks.
The benchmark index closed at 90,860 points, reflecting a 2.13% increase, following a wave of buying momentum in the latter half of the trading session.
In the day’s trading, the index oscillated within a range-bound environment initially, before entering a powerful upward trajectory spurred by intensified buying in pivotal sectors. The index reached an intraday high of 91,133 points as investor sentiment turned decisively positive. Key sectors, including cement, fertilizers, oil and gas exploration, oil marketing companies (OMCs), and power generation, led the charge, with heavyweights like OGDC, PPL, SNGPL, and SSGC closing in the green.
This surge follows a period of optimism at the PSX, buoyed by strong corporate earnings and speculations about a potential policy rate cut. The State Bank of Pakistan’s Monetary Policy Committee (MPC) is scheduled to convene on Monday, November 4, with market analysts and investors alike anticipating an accommodative policy stance that could catalyze further bullish momentum.
Adding to the market sentiment, recent economic data showed that Pakistan’s headline inflation increased slightly to 7.2% year-on-year in October 2024, up from September’s 6.9%, as per the Pakistan Bureau of Statistics (PBS). Investors are closely watching how this inflation data will influence the central bank’s policy decision.
Friday’s bullish session came after a day of profit-taking that had caused the KSE-100 Index to dip by 1,320 points, closing at 88,967 on Thursday. However, renewed interest in value stocks helped the index bounce back in today’s session.
On the currency front, the Pakistani rupee appreciated marginally against the US dollar, gaining Re0.15 to close at PKR 277.70 in the inter-bank market, marking a 0.05% increase.
Trading volume on the all-share index, however, saw a slight decrease to 465.86 million shares from Thursday’s 546.27 million shares. The total value of shares traded dipped to Rs23.09 billion from the previous day’s Rs24.12 billion, reflecting cautious but positive investor sentiment.
Among individual performers, Silk Bank Ltd led the trading volume with 62.53 million shares, followed by K-Electric Ltd with 57.57 million shares, and WorldCall Telecom at 27.21 million shares. Out of 430 companies traded, 220 closed higher, 156 registered declines, and 54 remained unchanged, indicating widespread optimism across various sectors.
With the upcoming MPC decision, investor sentiment remains optimistic, as market players anticipate further gains, especially if a rate cut materializes to support economic growth and corporate earnings.
