Karachi, October 4, 2024 – Pakistan equities soared to a historic high on Friday as the KSE-100 index surged to an unprecedented 83,532 points. This significant milestone was fueled by renewed investor confidence following a sharp decline in yields in the secondary market, particularly in government-issued Treasury Bills (T-Bills) and Pakistan Investment Bonds (PIBs).
The Pakistan Stock Exchange (PSX) witnessed robust activity, with the benchmark KSE-100 index climbing 810 points or 0.98%, from the previous close of 82,722 points. The sharp ascent at the Pakistan equities was primarily driven by a combination of favorable macroeconomic conditions and sector-specific tailwinds, which drew investors back into the fold.
Topline Securities Limited, a prominent brokerage firm, commented on the market rally, attributing the bullish momentum to the decline in yields on government debt instruments. The drop in yields created an attractive environment for equities, prompting investors to pivot toward riskier assets in search of higher returns. Additionally, investor interest was bolstered by strong financial performance in the Exploration & Production (E&P) sector, with Pakistan Petroleum Limited (PPL) leading the charge.
PPL’s latest financials, released to the PSX, revealed a remarkable improvement in its cash collection ratio, which surged to 81% in FY24 compared to 53% in FY23. This surge was largely attributed to a favorable upward revision in gas prices, a key factor enhancing the company’s financial stability and attractiveness to investors.
Key market movers that contributed to the index’s record-breaking journey included PPL, Oil & Gas Development Company (OGDC), Meezan Bank Limited (MEBL), Lucky Cement (LUCK), and Pakistan Oilfields Limited (POL). Collectively, these companies contributed 517 points to the overall index gain, underscoring their central role in the day’s rally.
The trading volume for the day reached a substantial 381 million shares, with a total value of Rs 20.5 billion. PACE, a retail real estate company, emerged as the volume leader, trading an impressive 59 million shares, reflecting heightened market activity.
In summary, the confluence of declining yields and positive corporate earnings reports has reinvigorated investor sentiment in Pakistan’s stock market, propelling the KSE-100 to new heights and reinforcing the equity market’s position as a lucrative avenue for investment. As market dynamics evolve, investor attention remains focused on both domestic economic indicators and sector-specific developments.