PTBP Web Desk
The Pakistan Stock Exchange (PSX) witnessed another historic day on Friday as persistent buying propelled the benchmark KSE-100 Index past the unprecedented 109,000-point mark.
The index gained over 1,000 points during intra-day trading, reflecting heightened investor confidence and strong market sentiment.
At 4:10 PM, following the mid-session break, the KSE-100 Index stood at an impressive 109,276.50 points, registering an increase of 1,037.54 points, or 0.96%. This marked a significant milestone in the exchange’s history and underscored the bullish momentum in the market.
The market’s upward trajectory was supported by strong performance across multiple key sectors. Among the standout performers were:
- Automobile Assemblers
- Commercial Banks
- Fertiliser
- Oil Marketing Companies (OMCs)
- Oil and Gas Exploration Companies
Index-heavy stocks, including Pakistan Petroleum Limited (PPL), Mari Petroleum Company Limited (MARI), Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGP), MCB Bank, National Bank of Pakistan (NBP), United Bank Limited (UBL), and Dewan Farooque Motors Limited (DFML), traded in the green, contributing significantly to the index’s gains.
The rally in the PSX is primarily attributed to heightened investor optimism driven by expectations of a substantial rate cut in the upcoming monetary policy meeting scheduled for December 16, 2024. Market sentiment has been further buoyed by institutional support and sustained interest from local investors.
On Thursday, the KSE-100 Index had already set the stage for Friday’s performance, closing at a record high of 108,238.97 points after gaining 3,134.63 points, or 2.98%. This strong performance reflected the positive outlook of investors toward the country’s economic future.
The positive developments, Saudi Arabia announced the extension of its $3 billion deposit with Pakistan for another year. The deposits, initially placed with the State Bank of Pakistan (SBP), were set to mature on Thursday. However, at the federal government’s request, the Saudi government confirmed the extension to further support Pakistan’s economy.
This move is expected to provide much-needed stability to Pakistan’s foreign reserves and bolster economic confidence amid ongoing challenges. The announcement played a crucial role in enhancing market sentiment, contributing to the record-breaking performance of the PSX.
While the PSX celebrated its historic achievement, global markets painted a mixed picture:
- Asian Markets: MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%, influenced by political tensions in South Korea. The KOSPI index in South Korea dropped 1.7% following reports of potential martial law declarations.
- China and Hong Kong: China’s blue-chip stocks rose by 0.2%, and Hong Kong’s Hang Seng index gained 0.4%, reflecting relative stability in these regions.
- US Dollar: Investors globally awaited the US payroll data to determine the likelihood of a rate cut by the Federal Reserve later this month.
The PSX’s historic rise is a testament to the resilience of Pakistan’s financial markets and the optimism surrounding the country’s economic reforms. As investors eagerly anticipate the monetary policy meeting, the focus remains on sustaining this momentum through strategic fiscal decisions and continued support for key industries.
The substantial 0.96% gain in the index highlights the growing confidence among investors, both domestic and institutional. With the Saudi deposit extension providing a further boost to economic stability, the PSX is poised for continued growth in the coming weeks.
