Karachi, December 6, 2024 – The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) sustained its bullish momentum for the eighth consecutive session on Friday, achieving a historic high of 109,054 points. This remarkable rally underscores investor confidence bolstered by improving economic indicators and favorable developments on the political and financial fronts.
The index surged by an impressive 815 points, or 0.75%, from the previous day’s close of 108,239 points, marking a robust continuation of its upward trajectory. Over the past eight trading sessions, the KSE-100 Index has soared by an extraordinary 14,480 points, reflecting a substantial gain of 15.31%.
Market analysts attribute this sustained rally to a confluence of factors. A major driver was the announcement that Saudi Arabia has agreed to extend its $3 billion deposit in the State Bank of Pakistan (SBP) for another year. This move has provided critical support to Pakistan’s foreign exchange reserves, alleviating concerns over external financing challenges.
The PSX’s resurgence followed a steep decline on November 26, 2024, driven by political uncertainty sparked by Pakistan Tehreek-e-Insaf’s (PTI) protests. However, decisive government action to quell the unrest restored investor confidence, leading to an unbroken streak of gains since then.
Friday’s trading session witnessed robust institutional buying, with the market recording a traded volume of 1.70 billion shares and a traded value of PKR 57 billion ($205 million). High-value stocks dominated activity, with United Bank Limited (UBL), Mari Petroleum (MARI), Engro Corporation (ENGRO), The Searle Company (SEARL), and Pak Elektron Limited (PAEL) emerging as top performers in terms of traded value.
Cumulatively, major contributions to the index were led by ENGRO, UBL, Meezan Bank Limited (MEBL), Dawood Hercules (DAWH), and MARI, which collectively added 956 points.
Market analysts at Topline Securities highlighted that the index’s persistent upward trend reflects strong market sentiment, fueled by macroeconomic stability and renewed investor interest. Looking ahead, the PSX is expected to remain buoyant as foreign inflows and economic reforms bolster investor optimism. However, analysts caution that sustained gains will depend on continued political stability and effective economic policymaking.