Karachi, November 14, 2024 – The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index reached a historic high of 94,192 points on Thursday, bolstered by sustained investor confidence and strong buying momentum. The index saw a gain of 836 points from the previous day’s close of 93,356 points, reflecting a significant 0.9% increase and marking a new all-time high.
Analysts credit the rally to robust buying activity, especially in key sectors such as energy and banking. Notably, large-cap stocks like MCB Bank, Meezan Bank (MEBL), National Bank of Pakistan (NBP), Hub Power Company (HUBCO), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), and Sui Southern Gas Company (SSGC) ended in positive territory. These index-heavy stocks drove much of the upward momentum, providing substantial support to the benchmark index.
The surge is partly attributed to positive macroeconomic indicators that have buoyed investor sentiment. Analysts point to controlled trade deficits and favorable interest rates as critical factors contributing to the bullish outlook. The market’s performance has been further supported by stable inflation and a steady monetary policy, fostering confidence among both domestic and foreign investors.
A significant development influencing market sentiment was the Finance Division’s meeting with the International Monetary Fund (IMF) on Wednesday. The division provided an update on Pakistan’s debt situation, external financing, and the expected rollover of $12.5 billion from allied countries. This engagement with the IMF, led by mission chief Nathan Porter, highlights ongoing fiscal support and transparency, adding optimism for further economic stability. Experts suggest that ongoing discussions with the IMF could help bolster investor confidence and bring sustained inflows into the market.
Wednesday’s trading session saw fluctuations as the index oscillated throughout the day, briefly dipping before rebounding to close near its peak. The market witnessed a mix of profit-taking and buying interest, with the financial, oil and gas, and power generation sectors being the primary contributors to the gains. Investor sentiment remained largely positive, with hopes that the economy’s favorable trajectory and strong macroeconomic indicators will continue to support market growth.
Looking forward, analysts are cautiously optimistic, predicting that the KSE-100 index may maintain its upward trajectory if favorable economic conditions persist. They emphasize that the outcome of IMF discussions, as well as macroeconomic stability, will be key to sustaining the rally and supporting further growth in the PSX.
