Karachi, November 8, 2023 – In a remarkable display of resilience and growth, the Pakistan stock market has soared to an unprecedented level, reaching a new all-time high of 54,261 points on Wednesday.
This remarkable feat was driven by a combination of factors, including positive economic expectations, falling global oil prices, and increased institutional buying.
The KSE-100 index, the benchmark of the Pakistan Stock Exchange (PSX), surged by 526 points from Tuesday’s closing of 53,735 points, marking a significant milestone in the country’s financial landscape. Analysts attribute this meteoric rise to a wave of optimism among investors, fueled by the belief that interest rates may decline sooner than anticipated as global oil prices continue to drop.
“Expectations are building that interest rates may come down sooner than expected after fall in global oil prices. This will help in easing inflation in Pakistan,” remarked Mohammad Sohail, CEO/Founder of Topline Securities Limited.
The market’s upward trajectory was further propelled by strong performances in key sectors such as Power, fertilizer, banking, and Auto. Companies like HUBC, ENGRO, MEBL, HBL, and MTL played a pivotal role in propelling the index upward, collectively contributing 208 points.
Despite the overall positive sentiment, certain stocks experienced declines, including INDU, TRG, and PAEL, which together caused a loss of 54 points.
PRL emerged as the most traded stock of the day, with a staggering 40.2 million shares changing hands. Overall, the market witnessed a trading volume of 481.6 million shares, amounting to a total value of Rs 20.1 billion. Interestingly, this trading volume represents the highest recorded since November 30, 2021, underscoring the renewed vigor within the market.
Commenting on the surge in trading activity, Sohail stated, “After touching all-time high, PSX saw big volumes today. Rs20 billion (USD70 million) shares were traded, which is a 2 year high. ‘Institutional buying amid expectations that interest rates may fall sooner than expected due to falling global oil prices,’ he added.”
The Pakistan stock market’s ascent to new heights is a testament to the country’s economic potential and the growing confidence of investors. As the market continues to evolve, it is poised to play an increasingly significant role in driving Pakistan’s economic growth and prosperity.
