Extending its record-breaking spree, the Pakistan Stock Exchange (PSX) reached a new pinnacle on Wednesday, propelled by a positive economic outlook and a decrease in external debt, which intensified investors’ interest in specific sectors.
Although the KSE-100 index experienced a slow start in the morning, hitting an intra-day low at 63,188.71 points, it steadily climbed throughout the day. Ultimately, the index reached an intra-day high of 64,038.83 points in the final trading hours, surpassing the 64,000 mark and establishing a new record.
Anticipation of a current account surplus in November 2023, increased dollar inflows, and the stability of the Pakistani rupee contributed to the market’s rise to the new peak. The upward trend was also attributed to strong buying across various sectors, with significant contributions from the technology, exploration and production (E&P), and banking sectors.
Although the market couldn’t sustain the 64,000 level, it concluded the day near that mark.
Arif Habib Corp MD Ahsan Mehanti stated, “Stocks closed at a new all-time high amid high trading on a strong economic outlook and State Bank data showing a 2.3% fall in external debt to Rs22 trillion in October 2023. Expectations of a current account surplus in November, improved dollar inflows, and rupee stability played the role of catalysts in the new record close at the PSX.”
At the close, the benchmark KSE-100 index recorded substantial gains of 961.70 points or 1.53%, settling at 63,917.72.
Topline Securities noted that Pakistan equities continued their trend of reaching new all-time highs, with the KSE-100 index closing at 63,918. “Bulls are not leaving any room for bears to walk in as strong buying across the board kept the momentum very high throughout the business hours,” they added.
Meezan Bank, Habib Bank, TRG Pakistan, Pakistan Petroleum, and Systems Limited made positive contributions by adding 387 points to the index. Conversely, Pakistan Tobacco, Adamjee Insurance, and Millat Tractors experienced some profit-taking, cumulatively losing 33 points, according to Topline. Arif Habib Limited (AHL) noted in its report that the PSX closed in on “64k for the KSE-100, crossed +40% quarter to date in US dollar terms, and was No 2 globally.”
