Karachi, May 10, 2024 – The Pakistan Stock Exchange (PSX) witnessed a historic trading session on Friday, as the KSE-100 index rocketed to a new record close of 73,085 points, marking a substantial gain of 429 points from the previous day’s finish of 72,658.
Muhammad Rizwan, Director Brokerage at Chase Securities Pakistan (Pvt.) Limited, highlighted the remarkable performance, noting the increase in market capitalization by 32 billion, up from the previous 30.7 billion. “Today’s trading session not only set a new benchmark for the PSX but also reflects the robust confidence investors place in the market dynamics,” said Rizwan.
The surge in the stock market was primarily fueled by investor optimism ahead of the anticipated release of lower Consumer Price Index (CPI) figures for May. Speculations about a potential decrease in the CPI have led to expectations of an interest rate cut in the upcoming June monetary policy review. These expectations played a crucial role in driving the market upward, particularly benefiting sectors like Cement, which alone added 213 points to the index’s gain.
The trading day also saw a revitalized interest in the Textile Composite Sector, which had previously shown less activity. Significant stock movements were observed with Nishat Mills Limited (NML) climbing by 6%, Interloop Limited (ILP) advancing by 4.5%, Nishat Chunian Limited (NCL) reaching its upper limit with a 7.5% increase, and Gul Ahmed Textile Mills Limited (GATM) rising by 6.35%.
Additionally, the Pharmaceutical sector experienced a positive momentum amid ongoing discussions about the potential deregulation of over-the-counter medicines, which could pave the way for higher sales volumes and profitability.
Market analysts believe that the positive trends observed today could continue if the expected economic indicators turn out favorable. “If the CPI comes in lower than expected, and the central bank responds with a rate cut, we could see sustained bullish behavior in the market,” explained Ayesha Khan, a senior financial analyst.
The performance of the stock market today indicates a robust economic outlook and a positive investor sentiment, reinforced by favorable market conditions and potential policy changes. Stakeholders across the board, from retail investors to large institutions, are closely monitoring these developments, hoping that the upward trajectory in the PSX continues in the weeks ahead.
As Pakistan’s economy shows signs of recovery and stability, the historic high in the stock market serves as a testament to the country’s resilience and potential for growth in various sectors.
