KSE-100 Index Hits All-Time High at 78,802 Points

KSE-100 Index Hits All-Time High at 78,802 Points

Karachi, June 20, 2024 – Pakistan’s stock market reached a historic milestone on Thursday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surging to an all-time high of 78,802 points.

The KSE-100 index experienced a remarkable gain of 2,095 points, rising from its previous closing of 76,707 points on June 14, 2024.

Analysts at Topline Securities highlighted that Pakistan stocks opened on a positive note and maintained momentum throughout the day, culminating in the record close at 78,801 points.

The primary driver of this positive run at the KSE-100 index was the banking sector, with key players such as United Bank Limited (UBL), MCB Bank (MCB), Habib Bank Limited (HBL), Bank AL Habib (BAHL), Allied Bank Limited (ABL), and Faysal Bank Limited (FABL) all hitting their respective upper circuits. These banking giants collectively contributed 1,086 points to the KSE-100 index.

Adding to the KSE-100 index optimism, the global ratings agency Fitch commented on Pakistan’s federal budget for 2024-25, stating that it enhances the likelihood of securing a deal with the International Monetary Fund (IMF). This positive outlook from Fitch further bolstered investor confidence and contributed to the market’s upward trajectory.

The textile sector also saw significant gains, with Interloop Limited (ILP) and Kohinoor Textile Mills Limited (KTML) closing at their upper circuits. This surge was driven by Prime Minister Shehbaz Sharif’s announcement of a substantial reduction in electricity prices for industries, cutting costs by Rs10.69 per unit. This move is expected to provide a significant boost to the textile sector, which is a key contributor to Pakistan’s economy.

Trading activity at KSE-100 index remained robust throughout the day, with over 452 million shares traded, amounting to a total value of Rs20 billion. Silkbank Limited (SILK) led the volumes chart, with over 53 million shares changing hands. The high trading volume indicates strong investor interest and confidence in the market’s prospects.

Market analysts believe that the combination of favorable economic policies, positive news on the IMF front, and sector-specific incentives are creating an environment conducive to sustained growth in the stock market. The banking sector, in particular, is expected to continue its positive performance, driven by strong fundamentals and investor optimism.

The KSE-100 index’s historic rise to 78,802 points reflects the prevailing positive sentiment in Pakistan’s stock market. The significant contributions from the banking and textile sectors, along with supportive economic policies, are driving this upward momentum.

As the market continues to respond to favorable news and policy measures, investors remain optimistic about future growth and opportunities in the Pakistani stock market.