Karachi, November 27, 2024 – The Pakistan Stock Exchange (PSX) witnessed a historic recovery on Wednesday, as the benchmark KSE-100 Index surged by an unprecedented 4,695 points, closing at a record high of 99,269. This 4.96% gain marked the largest single-day rise in the PSX’s history, signaling a strong comeback after a day of significant turmoil.
The previous trading session saw the PSX experience its worst-ever single-day decline, with the KSE-100 Index plummeting 3,800 points due to political uncertainty stemming from protests in the federal capital. However, the market staged a dramatic reversal as reports of restored normalcy in Islamabad emerged, with the government successfully dispersing protesters and stabilizing the situation.
Market analysts hailed this recovery as a sign of investor resilience. Analysts at Topline Securities Limited noted, “The bulls took control of the PSX with an extraordinary rebound, as the KSE-100 Index soared to an intraday high of 4,975 points before closing at 99,269.” This recovery not only erased Tuesday’s losses but pushed the market to a new peak, showcasing the potential of the PSX to recover from external shocks.
Wednesday’s rally also led to a significant increase in market capitalization. After Tuesday’s loss of Rs 480 billion, the PSX saw a remarkable addition of Rs 526 billion, marking the second-highest single-day surge in market capitalization in its history.
The rally was broad-based, with strong buying activity across multiple sectors. The banking sector, a heavyweight in the PSX, spearheaded the recovery, followed by automobile assemblers, oil and gas exploration companies, oil marketing companies (OMCs), and power generation firms. Among the top contributors to the KSE-100 Index were FFC, HBL, SYS, BAHL, and PPL, collectively adding 1,546 points to the index’s remarkable rise.
Trading volumes at the PSX remained robust, with 1,052 million shares exchanged during the session, representing heightened investor activity. The total turnover for the day stood at Rs 39.4 billion, highlighting the surge in market confidence. The Bank of Punjab (BOP) led the trading volumes, with 114 million shares traded.
The reversal in the PSX was largely attributed to the opposition party’s decision to end its protests in Islamabad, signaling a de-escalation of political tensions. Investors responded positively to this development, which reduced uncertainty and restored confidence in the market.
The dramatic recovery underscores the PSX’s ability to rebound from setbacks and reflects the strong underlying fundamentals of the Pakistani equity market. Market experts believe that the PSX’s performance was supported by attractive valuations and expectations of political stability following the resolution of protests.
Despite the historic gain, analysts advised caution, highlighting the need for sustainable reforms to ensure consistent growth in the PSX. While the rally signals short-term investor confidence, the long-term performance of the market depends on macroeconomic stability, robust policymaking, and structural reforms to attract sustained investments.
With its largest single-day gain in history, the PSX has once again demonstrated its resilience and potential as a key barometer of Pakistan’s economic and financial health.
