Karachi, October 17, 2023 – The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) experienced a significant milestone on Tuesday, crossing the 50,000-point threshold for the first time in over six years.
However, the achievement proved fleeting as the index closed at 49,531 points, down 200 points from the previous day’s closing at 49,731 points.
READ MORE: Pakistan Stock Market Starts Week Strong, Reaches 49,731 Points
Analysts at Topline Securities noted that after more than six years, Pakistan equities crossed the major psychological level of 50,000 on an intraday basis. The day began on a positive note as investors continued their cherry-picking at the PSX, hovering around the 50,000 level. However, as anticipated, once the KSE-100 index reached the 50,000 mark, profit-taking ensued, leading to a negative close for the benchmark index. This occurred after 11 consecutive positive sessions and resulted in a closing level of 49,531 points, representing a 0.40 percent decrease.
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In addition to profit-taking, another potential reason for this market action could be the depreciation of the Pakistani Rupee, which followed a continuous winning streak of 28 sessions against the US Dollar since September 5, when it closed at Rs. 307.10. The local currency ended the day at 277.03, experiencing a slight decrease of 0.07 percent.
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During the day, the Power, Tech, Bank, and E&P (Exploration & Production) sectors had a negative impact on the index. HUBC, TRG, UBL, PPL, and HBL collectively contributed to a loss of 146 points. On the flip side, LUCK, MEBL, and PIOC garnered some buying interest and added 44 points collectively.
The day saw substantial trading activity, with over 368 million shares changing hands, and the total value of trades amounted to Rs. 10.3 billion. KEL led the volumes chart with trading of almost 66 million shares.
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The brief crossing of the 50,000-point mark reflects the market’s resilience and continued interest from investors, even as it faced profit-taking and currency depreciation. The stock market’s performance remains an important indicator of economic sentiment and stability in Pakistan.
