Karachi, October 7, 2024 – In a historic leap, the benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) skyrocketed on Monday, closing just shy of the coveted 85,000-point milestone. The index surged by 1,378 points, or 1.65%, to conclude the trading session at 84,910 points, a significant rise from last Friday’s close of 83,532 points.
Market analysts are confident that the index is poised to breach the psychological barrier of 85,000 points in the coming days. The rally is seen as a testament to investor confidence, underpinned by macroeconomic tailwinds and favorable conditions in both domestic and global markets.
Topline Securities Limited commented on the extraordinary surge, attributing the bullish sentiment to falling bond yields and the prospect of a substantial decline in inflation. These factors have injected renewed optimism into the market, luring investors back into equities with hopes of sustained growth.
“The KSE-100 index’s remarkable ascent to 84,910 points reflects growing investor confidence, primarily driven by expectations of economic stability and easing inflationary pressures,” Topline analysts noted. “The market has been buoyed by the recent dip in bond yields, suggesting that interest rates may soften in the near term, which further invigorated sentiment.”
Several key players spearheaded the market’s rally, including Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Fauji Fertilizer Company (FFC), Pakistan Oilfields Limited (POL), and Engro Corporation (ENGRO). Collectively, these stocks contributed an impressive 752 points to the index, with energy and fertilizer sectors leading the charge. OGDC and PPL, in particular, have been strong performers amid a global uptick in oil prices and domestic reforms to support energy production.
Trading volumes were robust, with 446 million shares changing hands, representing a total turnover of approximately Rs 30 billion. PPL dominated the day’s trading, with 40 million shares exchanged, making it the most actively traded stock on the exchange.
The broader market outlook remains optimistic, with analysts forecasting continued strength in the PSX as economic reforms, reduced inflation, and a more stable interest rate environment provide further impetus for growth. Should these conditions persist, the KSE-100 Index could breach the 85,000-point threshold and set new records in the days ahead.
The bullish momentum is expected to sustain as investor confidence grows, driven by favorable macroeconomic indicators and renewed optimism in Pakistan’s equity market.