Karachi, November 3, 2023 – In a remarkable turn of events, the KSE-100 index of the Pakistan Stock Exchange (PSX) achieved an all-time high at 53,123 points on the closing day of the trading week.
This record-breaking surge in the index, which represents the performance of the Pakistani stock market, left investors and analysts astounded.
The KSE-100 index closed at an impressive 53,123 points, a substantial increase of 466 points compared to the previous day’s closing figure of 52,637 points. This notable surge in the index represented a 0.90 percent increase, marking the highest closing level since May 24, 2017.
Analysts at Topline Securities Limited attributed this positive momentum in the market to several factors, with a key driver being the decline in yields in the T-Bills auction conducted during the week. Yields saw a noteworthy decrease, ranging from 25 basis points to 41 basis points. This shift in the fixed income market was influenced by the monetary policy announcement made by the Central Bank on Monday, where it decided to maintain the policy rate at 22 percent.
A closer look at the market dynamics reveals that major contributors to the index’s surge included MCB Bank Limited (MEBL), Hub Power Company (HUBC), Oil and Gas Development Company Limited (OGDC), Fauji Fertilizer Company (FFC), and Lucky Cement Limited (LUCK). Together, these companies added an impressive 237 points to the index. On the flip side, certain other companies, including Habib Bank Limited (HBL), Engro Corporation Limited (ENGRO), Pakistan Oilfields Limited (POL), Service Industries Limited (SRVI), and Maple Leaf Cement Factory Limited (MLCF), saw a decline in their stock values, which collectively had a negative impact of -85 points on the index.
The trading volume for the day was robust, with 509 million shares changing hands, reflecting the heightened enthusiasm and participation of investors. The total value of shares traded amounted to a staggering Rs. 15.6 billion, indicating a high level of investor confidence.
In today’s trading session, Kohinoor Spinning Mills Limited (KOSM) emerged as the volume leader, with a remarkable 43 million shares being traded. This highlights the diverse range of companies and sectors that were attracting investors’ attention and contributed to the surge in trading activity.
This remarkable milestone in the KSE-100 index’s history is a testament to the resilience and growth potential of the Pakistani stock market. The positive sentiment driven by the decline in yields and the Central Bank’s decision to maintain the policy rate at 22 percent has clearly spurred investor confidence. Market participants will be closely monitoring the upcoming trading sessions to see if this bullish trend can be sustained and whether new records can be set in the near future.
The remarkable performance of the KSE-100 index not only signifies a positive outlook for Pakistan’s economy but also serves as a beacon of hope for investors, both domestic and international. As the trading week concludes on this remarkable high, market participants are eagerly awaiting what the future holds for the country’s stock market.
