Karachi, May 14, 2024 – The Pakistan Stock Exchange (PSX) witnessed a historic moment on Tuesday as the benchmark KSE-100 index surged to a new record high, reaching an impressive level of 74,531 points.
The KSE-100 Index exhibited remarkable resilience and strength, gaining 732 points from the previous day’s closing of 73,799 points. This notable increase, equivalent to 0.99%, reflects the continued upward momentum of the Pakistani stock market.
Muhammad Rizwan, Director Brokerage at Chase Securities Pakistan (Pvt.) Limited, offered insights into today’s trading session, emphasizing the sustained positive trajectory of the market. He noted that the market’s bullish sentiment was driven by robust performances from key sectors, particularly Exploration & Production (E&P) and Banking, which collectively contributed 512 points to the overall gain.
The Exploration & Production (E&P) sector witnessed notable gains ranging from 1% to 2.5%, fueled by investor optimism surrounding the potential resolution of circular debt within the IMF Program. Additionally, news of a price increase of 30 to 50 rupees for cement in the North region boosted certain North-based players, with CHCC, FCCL, and GWLC closing up by 1.5%, 0.5%, and 7.48% respectively.
However, the cessation of the Fertilizer gas price subsidy on Feed and Fuel prices for Fatima and AGL prompted investors to adjust their positions, resulting in declines of 2% and 2.5% respectively for these stocks. Conversely, other fertilizer companies such as EFERT and FFC, expected to benefit from this development, saw increases of 4.3% and 0.3% respectively.
Anticipation surrounding the MSCI rebalancing acted as a catalyst for the market, as the potential for enhanced PSX performance relative to other markets within the MSCI Frontier basket may lead to an increase in PSX market weight, thereby attracting higher foreign inflows.
Despite the market’s strong performance, trading value decreased by 12% to 28 billion compared to yesterday’s value of 32 billion. This decline in trading value suggests a cautious approach among investors, potentially influenced by factors such as profit-taking or market consolidation.
The achievement of a new record high by the KSE-100 index underscores the resilience and confidence in Pakistan’s capital markets. As investors navigate through evolving market dynamics, sustained momentum and prudent investment strategies will be crucial in capitalizing on future opportunities and driving continued growth in the Pakistani stock market.
