Karachi, September 19, 2024 – The Pakistan Stock Exchange (PSX) witnessed a strong rally on Thursday as the benchmark KSE-100 index surged past the psychological barrier of 82,000 points for the first time in history. However, the bullish momentum slowed toward the end of the session, with investors opting to lock in profits.
The KSE-100 index of PSX gained 998 points during the day, closing at 81,459, up from the previous day’s close of 80,461 points. The 1.24% increase reflected the growing optimism in the market, with traders and analysts noting key economic developments as major drivers behind the surge.
Topline Securities Limited highlighted that the robust performance of PSX was fueled by a combination of positive economic indicators and expectations of lower interest rates. The recent rejection of all bids for Market Treasury Bills by the government added fuel to speculation that the State Bank of Pakistan (SBP) may be positioning itself to cut interest rates in the near future, providing relief to businesses and the broader economy.
“The market breached the 82,000-level early in the session, supported by improving investor sentiment around the potential interest rate cuts and the government’s proactive economic measures,” said a senior market analyst. “However, as soon as the index touched the 82K milestone, many investors opted to take profits, causing the market to retreat slightly by the close.”
A key factor driving the market’s rise was the strong performance of blue-chip stocks. Fertilizer companies, banks, and oil and gas firms played a pivotal role in the rally. Companies such as Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), Meezan Bank (MEBL), MCB Bank, and Oil and Gas Development Company (OGDC) collectively contributed 690 points to the day’s gain, showing their significant impact on the market’s overall performance.
Trading activity at the PSX remained robust, with 458 million shares changing hands over the course of the day, amounting to a total value of Rs 18 billion. KOSM was the most actively traded stock, with 35 million shares exchanged, reflecting strong interest from investors.
As the market looks ahead, analysts are optimistic about continued positive momentum, though they caution that volatility is likely to persist, especially as profit-taking behavior continues. For now, the bullish sentiment is expected to hold, driven by expectations of favorable economic policies and potential interest rate adjustments. The next few sessions will be critical in determining whether the PSX can break through the 82,000 barrier decisively.
