Karachi, September 20, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) continued its bullish momentum and soared to a record high of 82,074 points, marking a significant milestone for Pakistan’s equity market.
The index gained 615 points from the previous day’s close of 81,459 points, reflecting growing investor confidence.
Analysts at Topline Securities Limited stated that the KSE-100 Index largely traded in the positive zone throughout the session, reaching an intraday high of 913 points before finally settling at 82,074 points. The market’s upward trajectory is attributed to lower-than-expected selling pressure related to the FTSE rebalance, which took place today. The FTSE Russell’s reclassification of Pakistan from its “Secondary Emerging” status to the “Frontier Market” category had been a major focus for investors.
Due to the FTSE rebalance, trading activity surged significantly. A total of 482 million shares were traded, marking a 5.2% increase on a day-on-day basis. The total value of traded shares stood at Rs 30.17 billion, a 68% increase compared to the previous day’s trading value.
The overall positive sentiment was further supported by a decline in key economic indicators such as the Karachi Interbank Offered Rate (KIBOR) and yields on government bills in the secondary market. Analysts believe that these declines indicate expectations of a possible cut in Pakistan’s policy rate in the near future, fueling optimism among investors.
In addition to the FTSE rebalance, other key developments contributed to the KSE-100’s strong performance this week. The Large-Scale Manufacturing (LSM) Index for July 2024 reported a year-on-year increase of 2.4%, though it fell by 2.1% month-on-month. Furthermore, the government conducted a T-Bill auction earlier in the week but rejected all bids, signaling potential caution over future borrowing costs. In contrast, the government raised Rs 83 billion through a Pakistan Investment Bonds (PIB) auction, with yields declining by up to 335 basis points across various tenors.
For the week, the KSE-100 Index posted a 2.57% gain on a week-on-week basis, further demonstrating the market’s strength. The average daily trading volume during the week was 469 million shares, with an average value of Rs 18.4 billion.
With continued robust performance and investor confidence on the rise, market experts expect the KSE-100 to maintain its upward trend in the near term.
