The Pakistan Stock Exchange (PSX) continued its upward trajectory, witnessing a bullish trend as its benchmark KSE-100 Index reached a historic milestone, crossing the 70,000-point mark for the first time on Tuesday.
By 11:35 am, the benchmark index had surged to 70,190.25, marking a significant increase of 570.27 points or 0.82%. Earlier in the day, it had reached an intra-day high at 70,677.29.
This surge in the KSE-100 Index reflects a sustained period of growth over the past few weeks. Investors have been buoyed by expectations of a monetary easing cycle alongside lower inflation rates, increased dollar inflows, and an overall positive sentiment regarding Pakistan’s economy.
The gains in the stock market have been broad-based, with shares from sectors like cement, banking, automotive, and energy all contributing to the rally.
On Tuesday, particular buying interest was observed in automobile assemblers, commercial banks, and oil and gas exploration companies. Index-heavy stocks such as PPL, OGDC, PSO, SNGPL, MEBL, and HCAR also traded positively.
Mohammed Sohail, CEO of Topline Securities, noted that the market’s surge beyond the 70,000 mark was supported by positive news regarding Saudi investment and deposits. Additionally, continuous foreign buying has bolstered equities, with the KSE-100 Index witnessing an impressive 70% increase since the end of June.
The mention of Saudi investment follows Pakistan and Saudi Arabia’s commitment to expedite the implementation of a $5 billion investment package, underscoring the Kingdom’s supportive role in Pakistan’s economy.
On Monday, the bullish momentum had propelled the KSE-100 Index to a record high, settling at its then-highest-ever closing at 69,620.
Globally, industrial metals prices continued to rise on Tuesday amid expectations of a global manufacturing rebound. Asian shares also saw modest gains ahead of key events such as US inflation data and a significant European Central Bank meeting.
