Karachi, October 16, 2024 – The Pakistan Stock Exchange (PSX) experienced a landmark day on Wednesday, as the benchmark KSE-100 index surged to an all-time high of 86,205 points.
This 365-point gain from the previous day’s closing of 85,840 points was fueled by investor optimism following the successful conclusion of the Shanghai Cooperation Organization (SCO) summit.
The SCO summit bolstered hopes for regional political and economic stability, significantly lifting market sentiment. Analysts at Topline Securities Limited noted that the record-breaking performance of the KSE-100 index reflected heightened investor confidence, with the potential for improved diplomatic and trade relations across the region driving increased buying activity.
This upbeat sentiment, coupled with strong corporate earnings across various sectors, triggered a broad-based rally. The energy sector saw particularly notable gains, as LPL, NPL, and NCPL reached their upper circuit limits. These gains came in the wake of news that the government plans to settle outstanding payments and has proposed four “take and pay” options for 18 Independent Power Producers (IPPs) established under the Power Generation Policies of 1994 and 2002. The announcement sparked optimism among investors in the power sector, adding further momentum to the market’s overall performance.
Major contributors to the KSE-100 index’s rise included key stocks such as Pakistan Petroleum Limited (PPL), Hub Power Company (HUBC), Pakistan State Oil (PSO), Oil and Gas Development Company (OGDC), and The Searle Company Limited (SEARL), which collectively added 368 points to the KSE-100 index.
Trading volumes remained robust, with 473 million shares exchanged during the session, generating a total value of Rs 26.9 billion. SEARL emerged as the most actively traded stock of the day, with 26 million shares changing hands, highlighting the strength of the pharmaceutical sector alongside other major industries.
The record-breaking performance of the KSE-100 index underscores the resilience of Pakistan’s stock market in the face of both domestic and global challenges. The positive outlook following the SCO summit and the anticipation of improved corporate earnings in the coming quarters have created an environment of optimism among investors.
While market analysts remain upbeat about future growth, they also caution that external factors, including global market conditions and geopolitical risks, could impact market stability in the long term. For now, however, the PSX continues to ride a wave of investor confidence.