Karachi, October 24, 2024 – The Pakistan Stock Exchange (PSX) witnessed a historic milestone on Thursday as the KSE-100 index surged to an unprecedented high, closing just shy of the 89,000 mark.
The benchmark KSE-100 index soared by 1,752 points, ending the day at 88,946 points, up from the previous day’s close of 87,194 points.
This remarkable ascent reflects a bullish sentiment in the market, driven by aggressive institutional buying and growing investor optimism ahead of the upcoming monetary policy meetings. The prospect of significant interest rate cuts in November and December has fueled market activity, with investors eagerly positioning themselves in anticipation of more favorable financial conditions.
Mohammad Sohail, CEO of Topline Securities Limited, highlighted the significance of this achievement. “Another record high with substantial volumes underscores the renewed confidence in the market. Institutional buying is at the forefront, buoyed by expectations of major rate cuts in the near future,” he stated.
The trading volume set a new record, with a staggering Rs 53 billion (USD 190 million) worth of transactions across the cash and futures markets. This surge in activity is a clear indicator of increasing investor confidence, signaling a shift in sentiment as market participants move their investments from fixed-income instruments to equities.
Maaz Mulla, Vice President and Senior Trader at Topline Securities Limited, noted that the KSE-100 index briefly touched an all-time high of 89,126 points, gaining 1,931 points or 2.22%, before closing at 88,946 points, reflecting a 2.01% increase for the day. “Bulls dominated the market, propelling the KSE-100 index to new heights on the back of rate cut expectations and strong corporate performances,” he said.
Several key stocks played pivotal roles in the KSE-100 index’s rise, with FFC, UBL, OGDC, EFERT, and MCB collectively contributing 935 points. In terms of value traded, UBL led the pack with Rs 3.1 billion, followed by ATRL at Rs 2.5 billion, and OGDC with Rs 1.9 billion.
The cement sector also captured significant attention, driven by anticipation of monetary easing. Stocks like GWLC (10%), ACPL (10%), PIOC (4.5%), KOHC (4.37%), and CHCC (4.01%) all posted robust gains.
In total, trading activity was exceptionally strong, with 757 million shares traded, amounting to Rs 36 billion in value. K-Electric Limited (KEL) emerged as the most actively traded stock, with an impressive 133 million shares changing hands.
With the market momentum showing no signs of slowing, all eyes are now on the upcoming monetary policy meeting as investors remain hopeful for further economic stimulus.