Pakistan Stock Exchange Achieves Historic Milestone as KSE-100 Surpasses 90,000 Points

In an exciting moment for Pakistan’s financial sector, the Pakistan Stock Exchange (PSX) reached unprecedented heights on Friday as the KSE-100 index crossed the 90,000-point mark in intra-day trading. This historic achievement reflects robust investor confidence and optimism, fueled by ongoing economic reforms, strategic government actions, and solid corporate earnings. The KSE-100 index climbed to a record 90,087.41 points at 10 am, with a notable gain of 1,109.73 points (1.25%) from the previous day’s close.

This week has been a bullish period for the PSX, with the index breaking new ground daily, reaching 89,000 on Thursday. Investors rallied behind blue-chip stocks, leading to high trading volumes and strong market participation, with 62,341,937 shares traded, amounting to Rs5.06 billion in value.

Key Drivers of the Bullish Momentum

1. Government Initiatives: Investor optimism was buoyed by government-led economic reforms and strategic negotiations, including talks on restructuring Pakistan’s energy sector debt with China.
2. Positive Corporate Earnings: The latest earnings reports from top Pakistani firms provided reassurance, with strong performance from sectors like exploration, production, and fertilizer.
3. Policy Rate Cut Speculation: Anticipation of a substantial cut in the State Bank’s policy rate, potentially in the range of 200-250 basis points, further fueled investment enthusiasm as investors shifted from fixed income to equity.

Market experts, including Ahsan Mehanti, Managing Director of Arif Habib Corp, noted that blue-chip stocks were at the forefront, driven by expectations of rate reductions, strong earnings, and favorable commodity prices. “Stocks closed at an all-time high, led by blue-chip shares, amid speculation in the earnings season,” Mehanti shared.

Top Performers of the Day

The leading gainers in Friday’s session included:

• Fauji Fertilizer Company (+6.7%)
• United Bank Limited (+5.33%)
• Oil and Gas Development Company (+3.65%)

Meanwhile, some stocks faced declines, such as Systems Limited (-1.53%), Interloop Limited (-2.74%), and Mari Petroleum (-0.44%).

Volume Leaders and Market Participation

With a trading volume of 757.6 million shares, the PSX recorded a remarkable trading day. Leading the trade volume were:

• K-Electric: 113.2 million shares traded, gaining Rs0.15 to close at Rs4.82.
• Pakistan Telecommunication Company: 41.1 million shares, gaining Rs0.98 to close at Rs16.76.
• Fauji Cement: 23.3 million shares, gaining Rs1.13 to close at Rs31.46.

Despite these gains, foreign investors divested shares worth Rs2.68 billion, according to data from the NCCPL, reflecting a balancing force in the market dynamics.

What Lies Ahead?

The State Bank’s Monetary Policy Committee meeting, scheduled for November 4, has captured investor attention. Market sentiment suggests that policy adjustments could introduce a fresh wave of growth for the KSE-100 index, particularly as investors look to core sectors like exploration, production, fertilizer, cement, and automobile for further gains. Analysts are optimistic that the index will continue its upward trend, marking a promising phase for Pakistan’s stock market.

The PSX’s performance not only highlights positive economic indicators but also demonstrates the resilience and potential within Pakistan’s financial market. This milestone represents a victory for both investors and the broader economy, marking a significant achievement in the journey towards financial stability and growth.