PTBP Web Desk
Stock Exchange (PSX) achieved a historic milestone on Thursday as the benchmark KSE-100 Index crossed the 113,000-point mark for the first time. This remarkable performance reflects investor confidence and a resilient market supported by economic recovery and positive global cues.
During early trading hours, the KSE-100 Index surged to an intra-day high of 113,481.90 points before retreating slightly. By 12:45 pm, the benchmark index stood at 112,863.51, registering a significant increase of 2,053.30 points or 1.85%.
This exceptional performance follows a strong rally on Wednesday, where the index climbed 1,913.57 points (1.76%) to close at a peak of 110,810.22 points.
The bullish momentum was driven by across-the-board buying in key sectors, including:
- Automobile assemblers
- Cement producers
- Commercial banks
- Oil and gas exploration companies
- Power generation firms
- Refineries
Notable index-heavy stocks, such as HUBCO, SSGC, SNGP, PPL, OGDC, MARI, ENGRO, HBL, MCB, and NBP, traded in the green, further bolstering the market.
Market analysts attributed this extraordinary rally to a combination of domestic and international factors. Mohammed Sohail, CEO of Topline Securities, described the stock market’s performance as unprecedented, stating, “From 40k to 112k in just 18 months – a stellar 180% return.” He emphasized that this is the best comeback in the PSX’s 75-year history, showcasing the resilience of Pakistan’s financial markets.
The surge in the KSE-100 Index aligns with improving economic indicators and positive investor sentiment. The Asian Development Bank (ADB) recently revised its GDP growth projection for Pakistan in fiscal year 2025, increasing it from 2.8% to 3%. Additionally, inflation forecasts were revised downward from 15% in FY24 to 10%.
Investors are also closely monitoring the upcoming Monetary Policy Committee (MPC) meeting, where a significant interest rate cut is widely anticipated. This potential reduction in borrowing costs is expected to provide further support to the market.
The PSX’s performance was also influenced by a broader recovery in global equities. Asian stocks saw gains on Thursday, buoyed by Wall Street’s tech-led rally overnight. A favorable reading of U.S. consumer inflation bolstered hopes for a Federal Reserve interest rate cut, which had a ripple effect on global markets.
- Japan’s Nikkei 225: Surpassed 40,000 points for the first time since October, driven by chip-sector advances and a weakening yen.
- South Korea’s KOSPI: Rose by 0.7%.
- Taiwan’s Benchmark Index: Gained 1%.
- Hong Kong’s Hang Seng: Advanced by 0.4%.
- Mainland China’s Blue Chips: Edged up by 0.2%.
Overnight, the Nasdaq soared 1.8%, closing above 20,000 for the first time, while the S&P 500 climbed 0.8%.
The KSE-100 Index’s meteoric rise from 40,000 to over 113,000 in just 18 months represents a remarkable 180% return, underscoring investor confidence and market resilience. Factors such as robust economic policies, recovering global markets, and favorable monetary policy outlooks have contributed to this historic achievement.
