Karachi, October 23, 2024 – The Pakistan Stock Exchange (PSX) witnessed an exhilarating surge as the benchmark KSE-100 index reached an all-time high of 87,195 points, marking a significant milestone in the nation’s financial landscape.
The KSE-100 index recorded a robust gain of 728 points, climbing from the previous day’s closing of 86,467 points, as investor optimism fueled a buying spree across the market.
The KSE-100 index crossed the coveted 87,000 level for the first time, settling at a new record high, which has been attributed to an influx of capital in index-heavy energy stocks. Notable gains were observed in shares of major players such as Hub Power Company (HUBCO), K-Electric Limited (KEL), Pakistan Petroleum Limited (PPL), and Oil and Gas Development Company (OGDC), as well as Attock Refinery Limited (ATRL), all of which traded significantly in the green.
Market experts have pointed to various catalysts driving this remarkable performance. Mohammed Sohail, CEO of Topline Securities, highlighted the anticipation of a potential reduction in the key policy rate, coupled with expectations of lower inflation readings in the coming month. “The decline in secondary market yields, political stability, the successful Shanghai Cooperation Organisation (SCO) summit, and local mutual fund buying are the primary reasons for this all-time high,” he remarked in a statement.
On the previous day, the PSX had already marked a record high, buoyed by aggressive buying predominantly from local investors and institutional support. The KSE-100 index had increased by 409.06 points, or 0.48%, to close at 86,466.58, setting the stage for the subsequent rally.
While the PSX thrived, global equity markets displayed mixed signals. Asian equities diverged on Wednesday following a lackluster performance on Wall Street, where rising bond yields and remarks from Federal Reserve officials dampened expectations for imminent US interest rate cuts. The recent global rally that propelled several markets to multiple records, particularly in New York, appears to have lost momentum as traders digest the US central bank’s plans amid positive economic data and a forthcoming tight presidential election.
Geopolitical tensions have further influenced market behavior, pushing safe-haven gold prices to new heights. Market participants are closely monitoring developments in Beijing, anticipating additional measures to spur growth following recent stimulus initiatives. Meanwhile, bets on a substantial 50-basis-point rate cut at the Federal Reserve’s next meeting have diminished due to a recent string of economic data showcasing resilience in the world’s largest economy and labor markets.
The KSE-100 index’s historic achievement reflects the underlying strength of Pakistan’s economy and investor sentiment. With political stability and favorable economic indicators at play, market analysts are optimistic about the sustainability of this bullish trend. The impressive performance of the index not only highlights the confidence investors have in Pakistan’s economic outlook but also signals a potentially transformative phase for the country’s capital markets.
As trading continues, all eyes will remain on the KSE-100 index, with investors keen to see if the momentum can be sustained in the coming sessions. The successful navigation of economic challenges and the ability to maintain investor confidence will be crucial in determining the future trajectory of the PSX. With an encouraging environment for investment and growth, the stage is set for further advancements in Pakistan’s financial markets.