Karachi, October 25, 2024 – The Pakistan Stock Exchange (PSX) saw a bullish surge on Friday as the KSE-100 index soared to an intra-day record of 90,593.61, marking the first time it breached the 90,000 threshold.
While selling pressure in the final hours kept the index just shy of this milestone at close, the benchmark settled at an impressive 89,993.97, climbing by 1,047.98 points or 1.18%.
The rally was propelled by robust investor confidence in index-heavy sectors, particularly automobile assemblers, commercial banks, fertilizers, oil and gas exploration companies, and oil marketing companies (OMCs). Notable performers included OGDC, PPL, SSGC, NBP, and MEBL, each contributing significantly to the day’s gains.
Investor optimism has been building on account of improved macroeconomic indicators and expectations of a policy rate reduction by the State Bank of Pakistan (SBP) at its upcoming Monetary Policy Committee (MPC) meeting on November 4. Analysts are projecting a substantial cut of at least 200 basis points in the policy rate, largely due to easing inflationary pressures. Recent inflation data showed the Consumer Price Index (CPI) registering at 6.9% in September, with expectations for stability in October within a projected range of 6.5% to 7%.
The upward momentum has been further supported by a strengthening Pakistani rupee, which appreciated by 0.07% against the US dollar in the interbank market. The currency closed at PKR 277.64, marking a gain of 20 paisas against the greenback, which reinforces investor confidence in the financial markets.
Trading volumes saw a slight dip, with total shares traded on the all-share index reaching 695.54 million, down from Thursday’s 757.65 million. However, the value of shares exchanged rose to PKR 37.87 billion from PKR 36.05 billion in the prior session, underscoring heightened buying interest despite the lower volume.
Leading the volumes, Fauji Foods Ltd recorded 57.56 million shares traded, followed closely by K-Electric Ltd with 41.40 million shares, and Sui Southern Gas Company (SSGC) with 38.04 million shares. Out of 457 companies traded, 181 registered gains, 222 faced declines, and 54 remained unchanged, reflecting a well-diversified market response.
Thursday’s session also saw a strong rally, with the index climbing by 1,751.45 points, or 2.01%, to close at a historic 88,945.99 points. This consecutive bullish trend reflects sustained local and institutional investor activity, with strong backing from financial institutions buoying the PSX.
As the market approaches record-breaking levels, investor sentiment remains highly positive, fueled by expectations of favorable fiscal policies and an anticipated rate cut. With economic stability seemingly on the horizon, the PSX stands poised for further milestones as confidence in Pakistan’s financial market continues to strengthen.