Karachi, April 26, 2024 – In a landmark day for Pakistan’s financial markets, the Karachi Stock Exchange’s benchmark KSE-100 Index surged to a new all-time high, closing at 72,743 points on Friday.
The KSE-100 index notched an impressive gain of 771 points from the previous day’s closing at 71,972 points, driven by robust performances across multiple sectors.
Muhammad Rizwan, a Senior Analyst at Chase Securities Limited, remarked on the day’s trading, noting that despite a choppy session on Thursday, the market rebounded strongly, setting a new record. “Today’s performance demonstrates the resilience and underlying bullish sentiment currently prevailing in the market,” said Rizwan.
The day’s success was broadly supported by substantial gains in several key sectors. The Fertilizer sector led the charge, contributing a significant 386 points to the index, followed by Commercial banks with 174 points, the Power sector with 112 points, and the Cement sector adding 93 points. These sectors collectively helped overturn the previous day’s negative close and fueled positive market sentiment.
A major boost for the Fertilizer sector came from the government’s announcement of uninterrupted gas supply during the upcoming Khareef planting season, a critical time for agricultural production. This news was particularly well-received by investors, propelling stocks like Engro Fertilizers Ltd. (EFERT), Fauji Fertilizer Company Ltd. (FFC), Fatima Fertilizer Co. Ltd. (FATIMA), and Fauji Fertilizer Bin Qasim Ltd. (FFBL) to notable gains.
In addition to fertilizers, the Auto assembly sector also saw significant trading activity, with key stocks such as Ghandhara Industries Ltd. (GAL), Ghandhara Nissan Ltd. (GHNI), Honda Atlas Cars (Pakistan) Ltd. (HCAR), and Sazgar Engineering Works Ltd. (SAZGAR) hitting their upper price caps. Market analysts suggest this surge was likely fueled by expectations of a potential cut in interest rates by the Monetary Policy Committee (MPC) in its upcoming review.
Despite the market’s robust performance, the day’s trading volume saw a slight downturn. The total value of trades dipped to PKR 36 billion from PKR 39 billion the previous day, marking an 8% decrease in traded value. However, this did not seem to dampen the investor enthusiasm as the market still closed on a high note.
“This milestone not only highlights the growing confidence among investors but also showcases the underlying strengths of Pakistan’s economy,” added Rizwan. He also noted that while certain global economic uncertainties remain, the domestic economic indicators and policy measures are creating a favorable environment for the capital market.
As Pakistan’s stock market continues to reach new heights, the focus now turns to whether this bullish trend can be sustained amid varying economic challenges and potential global headwinds. Market watchers and investors alike remain optimistic, hoping that the KSE-100 will continue to provide lucrative opportunities for both seasoned traders and new entrants in the market.
