KSE-100 Index Soars to Record High, Hits 72,052 Points

KSE-100 Index Soars to Record High, Hits 72,052 Points

Karachi, April 24, 2024 – The Pakistan Stock Exchange (PSX) witnessed a significant milestone on Wednesday as the KSE-100 index climbed to a new all-time high of 72,052 points, marking a robust day of trading that saw the index ascend by 692 points from the previous session’s close of 71,360 points.

The surge in the index was supported by a notable uptick in investor confidence, buoyed by positive economic indicators including improvements in foreign exchange reserves and favorable inflation trends. Market analysts suggest that these developments have fueled hopes for potential monetary policy easing, which in turn spurred buying activities across various sectors.

According to a detailed analysis provided by Topline Securities Limited, the KSE-100 index experienced significant intraday volatility, peaking at an intraday high of 72,155 points before a slight correction. The day’s low stood at 71,107.61, showcasing the market’s dynamic range amid active trading.

The sectors that led the rally included Cement, Banking, Power, and Automobiles. Notable performers contributing to the index’s gain were LUCK, HUBC, HBL, MTL, and SYS, which together added a substantial 369 points to the index. However, not all was positive as there was noticeable profit-taking in some stocks such as MEBL, PAKT, and PSEL, which collectively detracted 85 points from the index.

In the banking sector, MCB and BAFL were in the spotlight after announcing their quarterly financial results. MCB reported a strong earnings per share (EPS) of Rs 15.04, coupled with a cash dividend of Rs 9.0 per share. Similarly, BAFL disclosed an EPS of Rs 6.31 and declared a cash dividend of Rs 2.0 per share. Both sets of results surpassed market expectations and contributed to positive sentiment in the banking stocks.

Trading volumes were particularly high, with about 599.29 million shares changing hands, amounting to a total trading value of Rs 24.45 billion. The most active stocks by volume were PIBTL, KEL, and AIRLINK, which together accounted for more than 120.5 million shares traded, highlighting the robust participation by retail and institutional investors alike.

The stock market’s exceptional performance is also reflective of broader economic optimism. Analysts believe that recent governmental measures aimed at stabilizing the economy and encouraging foreign investment are starting to bear fruit, manifesting in stronger market fundamentals and improved investor sentiment.

As the PSX continues to scale new heights, market watchers remain cautiously optimistic, noting that while the momentum is positive, investors should remain vigilant of global economic cues and local political dynamics that might influence market directions in upcoming sessions.

Investors are advised to keep an eye on further economic announcements and corporate earnings reports that are due in the coming weeks, which could potentially sustain or alter the current market trajectory.