Karachi, December 8, 2023 – In a stunning display of market resilience, the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) soared to a new historic high of 66,224 points on December 8, 2023, continuing an unabated bull-run that has captured the attention of investors worldwide.
The index experienced a remarkable gain of 1,506 points from the previous day’s closing of 64,718 points, marking an impressive 2.33 percent day-on-day increase.
Analysts attribute this unprecedented rally to a combination of factors, chief among them being the sustained economic recovery in Pakistan and the restoration of confidence among both local and foreign investors. Mohammad Sohail, CEO of Topline Securities Limited, highlighted the extraordinary nature of the market surge, noting that the PSX skyrocketed by 11,000 points or 20 percent in just four weeks, translating to a gain of 1 percent every day.
“This is a justified and expected recovery when compared to the last few abnormal years,” Sohail commented, emphasizing the significance of the current bull-run in the context of the market’s recent history. He also pointed out that despite the substantial growth, the KSE 30 Price-to-Earnings (PE) ratio stands at 4 times, representing a relatively low and attractive level for potential investors.
Foreign investors have played a pivotal role in fueling this bullish momentum, with the foreign portfolio investment reaching a six-year high at the PSX. Sohail noted that November 2023 witnessed the highest monthly foreign portfolio investment in recent years, as foreign corporates bought shares worth $66 million and sold $31 million, resulting in a net buying of $35 million in a single month. This surge represents the most significant monthly inflow since 2017, with the KSE 100 Index recording a remarkable 17 percent gain in November alone.
In terms of market dynamics, Ismail Iqbal Securities provided a daily market review, indicating that the bullish momentum in the equity market persisted on the highlighted day. The KSE-100 index surpassed the 66,000 mark, with trading volumes increasing to 818 million shares, up from 765 million shares in the previous session. Noteworthy contributors to this surge were the commercial banks, fertilizer, and oil and gas exploration companies sectors, collectively adding 1,059 points to the index.
As the KSE-100 index continues to break records and exhibit remarkable resilience, investors and analysts are closely monitoring the market for potential signs of sustainability and any underlying factors that may influence future trends. The current bullish momentum has undoubtedly positioned the PSX as a focal point of interest for both domestic and international investors, signaling positive sentiment and optimism regarding the economic outlook for Pakistan.
