PSX Hits New Heights as KSE-100 Index Crosses 93,000 Mark

The Pakistan Stock Exchange (PSX) continued its impressive rally, closing the week on a high note as the KSE-100 index surged by 619 points, reaching a record 93,140.26 during intra-day trading. This historic rise comes amid positive economic forecasts, increased foreign investment, and a strong performance across various sectors.

Record-Setting Day for the KSE-100 Index

Starting the day on a strong footing, the KSE-100 index gained 619.78 points, a 0.67% increase from the previous day’s closing at 92,520.48 points. At its peak, the index touched 93,141.70 before settling slightly lower, marking a high point in Pakistan’s stock market history. With 146 million shares traded and transactions totaling approximately PKR 8.53 billion, the PSX showed robust investor activity and confidence.

Key Drivers Behind the Surge

The upward trend in the stock market is driven by various factors. Investors are optimistic about a potential credit ratings upgrade and new Saudi investments. The recent decline in Sukuk yields and the inclusion of several Pakistani companies in the MSCI Frontier Markets Small Cap Index also added to the positive sentiment, attracting both local and global investors. Analysts suggest that these developments signal improved liquidity and could encourage further foreign fund inflows.

IMF Visit and Economic Expectations

Investors are eagerly awaiting the upcoming IMF review mission to assess Pakistan’s performance under its $7 billion Extended Fund Facility. Additionally, the MSCI’s plan to increase Pakistan’s standard index weight to 4.4% by November 26 is expected to bolster investor confidence further.

Sector-Wise Highlights

Sectoral performance played a significant role in the index’s climb. Dawood Hercules Corporation (+7.58%), Oil and Gas Development Company (OGDC) (+2.62%), and Engro Corporation (+2.92%) emerged as major contributors. Interest surged in OGDC and Pakistan Petroleum Limited (PPL) after news of potential Saudi investment, including the Reko Diq mining project.

Market Analysis and Insights

Topline Securities highlighted the positive impact of recent Sukuk auctions, where a decrease in cut-off yields signals a potential drop in yields across T-bills and PIBs. The visit of Pakistan’s Prime Minister to Saudi Arabia, followed by a delegation focused on energy investments, has further fueled market optimism.

A Look at Trading Volumes Thursday’s trading session saw trading volumes of around 679 million shares, predominantly in fertilizer, oil, and power generation sectors. Despite a slight drop in volume compared to Wednesday’s 889 million shares, the trading value remained significant at Rs24.8 billion. Among the top volume leaders were Bank of Punjab, Kohinoor Spinning Mills, and K-Electric.

Investor Sentiment and Foreign Participation

Analysts at JS Global attribute the positive market sentiment to economic improvements and rupee stability, which bolstered investor confidence. Foreign investors were net buyers, with shares worth Rs30.98 million purchased, according to data from the NCCPL.