Karachi, November 19, 2024 – Pakistan stocks surged to an all-time high on Tuesday as bullish momentum dominated trading, adding 861 points to the benchmark KSE-100 index. The index closed at 95,857 points, up from the previous day’s 94,996 points.
The rally was fueled by investor optimism and expectations of a significant drop in inflation. Analysts at Topline Securities highlighted the exceptional performance of Pakistan stocks, noting that the index briefly touched a record intraday high of 96,036 points before settling at its closing level. This marks a 0.91% gain, underscoring the market’s positive sentiment.
Driving the enthusiasm was the anticipation of a decline in the Consumer Price Index (CPI) to a range of 4.5%-5.0% year-on-year, marking the first time in over six years that inflation is projected to fall below 5%. This development has bolstered confidence in Pakistan stocks, as lower inflation is seen as a catalyst for economic stability and growth.
The technology sector was a major highlight, with Systems Ltd. (SYS) soaring 8.59% following the announcement that its subsidiary, OneZapp, received State Bank of Pakistan approval to operate as an Electronic Money Institute. This milestone reflects growing innovation and investor confidence in Pakistan stocks, particularly in the tech industry.
Pharmaceutical stocks also extended their bullish run, with AGP, BFBIO, FEROZ, and ABOT recording gains. Analysts noted that these sectors have been key contributors to the market’s upward trajectory, bolstering the overall strength of Pakistan stocks.
Significant contributions to the index’s gains came from blue-chip stocks, including SYS, UBL, ABOT, PSO, and EFERT, which collectively added 484 points. The robust trading activity saw 830 million shares traded, generating a turnover of Rs 30 billion, further emphasizing the strong momentum in Pakistan stocks. HASCOL emerged as the volume leader, with 60 million shares changing hands.
As Pakistan stocks continue to rally, analysts remain optimistic about the market’s near-term prospects. The combination of easing inflation, strong sectoral performances, and robust investor activity suggests sustained growth potential for the KSE-100 index.
However, market watchers advise caution amid global economic uncertainties that could impact Pakistan stocks in the longer term. For now, the bullish sentiment remains intact, making Tuesday’s performance a historic day for the country’s financial markets.
