Karachi, November 29, 2024 – The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) reached an all-time high of 101,357 points on Friday, marking a gain of 1,274 points from the previous day’s close of 100,083 points.
This sustained rally at KSE-100 index follows the historic breach of the 100,000-point mark a day earlier, signaling a robust recovery and renewed investor confidence.
Investor optimism dominated trading at the KSE-100 index, with significant buying activity across key sectors such as commercial banking, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Index-heavy stocks, including Attock Refinery Limited (ATRL), Hub Power Company (HUBCO), Sui Southern Gas Company (SSGC), Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), Habib Bank Limited (HBL), National Bank of Pakistan (NBP), and MCB Bank, all traded in the green, driving the index to new heights.
The KSE-100 index of PSX rally represents a dramatic turnaround, particularly following a dip earlier in the week caused by political unrest and violent protests in Islamabad. Experts attribute the market’s resilience to several factors, including exchange rate stability, optimism surrounding Pakistan’s transition from a $3-billion Stand-By Arrangement to a longer-term program with the International Monetary Fund (IMF), and improved earnings in key sectors.
Monetary easing by the State Bank of Pakistan (SBP) has further fueled investor interest, creating a favorable environment for equities. The reduction in policy rates has eased financing costs, encouraging investment in the stock market and boosting investor sentiment.
The record-breaking performance of KSE-100 index also reflects broader confidence in Pakistan’s economic outlook. Analysts note that the improved macroeconomic stability, supported by higher foreign exchange reserves and inflows from remittances, has enhanced the overall market sentiment.
As the KSE-100 Index continues its upward trajectory, experts caution that sustaining this momentum will require careful economic management, particularly in navigating geopolitical risks and maintaining investor confidence. For now, the PSX remains a bright spot in Pakistan’s financial landscape, showcasing its potential to attract both local and foreign investment.
