Karachi, May 24, 2024 – In an unprecedented surge, the KSE-100 index breached the 76,000-point mark for the first time during intraday trading on Friday.
Despite this historic ascent, the index was unable to maintain its momentum, closing just shy of this psychological benchmark.
The KSE-100 index registered a robust gain of 869 points, concluding the trading day at 75,983 points, up from the previous day’s closing of 75,114 points. This remarkable performance was fueled by optimism following statements from the International Monetary Fund (IMF), indicating that significant progress had been made towards reaching a staff-level agreement with Pakistani authorities as discussions wrapped up.
Analysts at Topline Securities Limited highlighted that this surge in the KSE-100 index was predominantly driven by positive sentiment surrounding the IMF’s encouraging statements. Key contributors to the index’s rise included heavyweights such as United Bank Limited (UBL), MCB Bank Limited (MCB), Meezan Bank Limited (MEBL), Hub Power Company (HUBC), and Engro Fertilizers Limited (EFERT), which collectively added 414 points to the index.
The trading session witnessed a substantial volume, with 607 million shares exchanged, and a total trading value of Rs 23.5 billion. K-Electric Limited (KEL) emerged as the volume leader, with a staggering 130 million shares traded.
Throughout the week, the KSE-100 index exhibited a 0.9% gain on a week-over-week (WoW) basis, with consolidation observed for most of the week. The final trading session’s positivity was largely attributed to the IMF’s optimistic outlook on Pakistan’s economic negotiations.
Additional buoyancy was injected into the market by Prime Minister’s recent visit to the United Arab Emirates (UAE), where commitments of US$10 billion in investments were secured from UAE’s top leadership. Furthermore, reports emerged of an imminent deal between Pakistan and Saudi Arabia concerning the Reko Diq project, with Pakistan poised to sell a 15% stake to Saudi investors.
For the week, the average traded volume and value were 498 million shares and Rs 16.67 billion respectively, reflecting a vigorous trading environment buoyed by significant economic developments and promising diplomatic engagements.
