Karachi, November 8, 2024 – The Pakistan Stock Exchange (PSX) continued its bullish streak on Friday, with the KSE-100 Index reaching an unprecedented peak of 93,292 points. This fresh high reflects an impressive rally as investor optimism mounts, fueled by macroeconomic stability and enhanced investor confidence in equity markets.
The KSE-100 Index surged by 772 points from the previous day’s close of 92,520, representing a solid 0.83% gain. Analysts at Topline Securities Limited attributed the sustained momentum to a notable decline in yields on fixed-income instruments, which has directed investor interest towards equities. Additionally, the recent improvement in key economic indicators, including foreign remittances and fiscal adjustments, has bolstered confidence in Pakistan’s capital markets, intensifying the buying spree across diverse sectors that make up the KSE-100 Index.
October 2024 inward workers’ remittances, recorded at $3.052 billion, reflected a 24% year-on-year (YoY) increase and a 7% month-on-month (MoM) rise. This significant influx of foreign exchange has strengthened the country’s financial stability, subsequently drawing in more investors to the stock market and contributing to the KSE-100 Index’s rise. This surge was reflected in Friday’s trading volume, which saw 763 million shares exchanged—a 13% increase day-over-day (DoD), with a corresponding traded value of PKR 30.2 billion, marking a 22% DoD rise.
Activity was particularly concentrated in several blue-chip stocks, with Attock Refinery Limited (ATRL), Oil and Gas Development Company (OGDC), Pakistan State Oil (PSO), Hub Power Company (HUBC), and Pakistan Petroleum Limited (PPL) leading in traded value on the KSE-100 Index. ATRL’s robust performance was largely influenced by a Corporate Briefing Session where the company addressed recent developments, including discussions with the Special Investment Facilitation Council (SIFC) regarding a pressing sales tax issue. The petroleum sector remains optimistic that a resolution will be reached by November 10, with the management expressing confidence in finalizing the agreement, potentially impacting future performance of the KSE-100 Index.
The Bank of Punjab (BOP) stood out as the volume leader on the KSE-100 Index, recording approximately 66.5 million shares traded. This increased investor participation, driven by favorable macroeconomic signals and corporate developments, underscores a profound resurgence of interest in Pakistan’s equity market, further supporting the KSE-100 Index’s upward trajectory.
Overall, the record-breaking surge in the KSE-100 Index epitomizes renewed confidence and reflects a market environment buoyed by foreign remittances, policy consistency, and investor optimism. The current rally in the KSE-100 Index, with its sustained upward trajectory, not only speaks to the allure of equity over fixed-income options but also suggests that Pakistan’s economic landscape may be entering a phase of greater stability and growth. If these trends persist, the KSE-100 Index could well be on track to reach new heights, continuing to attract both local and foreign investors alike.
