Karachi, October 8, 2024 – The Pakistan stocks continued its bullish streak on Tuesday as the benchmark KSE-100 index surged to an all-time high of 85,664 points, marking a 754-point gain from the previous day’s close of 84,910 points.
This remarkable rise at the Pakistan stocks is the latest in an ongoing rally that has seen the stock market soar to new heights, driven by a mix of improving economic indicators and investor optimism.
Analysts at Topline Securities Limited hailed the impressive performance, noting that the KSE-100 index of Pakistan stocks climbed by 0.89% during the trading session. They attributed the rally to declining bond yields and expectations of a significant drop in inflation, which has created a positive sentiment across the market and encouraged increased investor participation.
The exploration and production (E&P) sector played a pivotal role in Tuesday’s rally at Pakistan stocks, with Oil and Gas Development Company (OGDC) posting a notable 3.14% gain, and Pakistan Petroleum Limited (PPL) rising by 1.13%. Together, these two stocks contributed 137 points to the index’s overall climb. Their performance reflects growing investor confidence in the sector, fueled by rising global oil prices and improving local production.
Key players in the financial and fertilizer sectors also made substantial contributions to the rally at Pakistan stocks. Bank AL Habib Limited (BAHL), Habib Bank Limited (HBL), Engro Fertilizers (EFERT), OGDC, and Bank Alfalah Limited (BAFL) were among the top performers, adding a collective 664 points to the index. These stocks have been riding the wave of positive sentiment surrounding the country’s macroeconomic outlook, further boosting market confidence.
Trading activity on the PSX was particularly robust, with 506 million shares traded during the session, totaling Rs 32.9 billion. This marks one of the most active trading days in recent months, signaling strong investor participation and liquidity. Among the most actively traded stocks was Hub Power Company (HUBC), which stole the spotlight with 45.8 million shares exchanging hands.
Market observers noted that the rally is supported by several positive developments, including expectations of lower inflation, which is likely to ease pressure on interest rates and further stimulate corporate profits. Declining bond yields have also made equities more attractive to investors, driving demand for shares in key sectors such as energy, banking, and fertilizers.
With the KSE-100 index reaching historic highs, analysts are optimistic that the upward trend will continue, especially as Pakistan’s economic fundamentals show signs of recovery. However, they caution that external factors such as global market trends and geopolitical developments could introduce volatility in the near future.