The Pakistan Stock Exchange (PSX) made history on Thursday as the KSE-100 Index surged past the 100,000 mark for the first time ever, continuing a remarkable recovery after a sharp decline earlier in the week due to protests in Islamabad.
The day kicked off with a 1% gain, fueled by widespread buying across various sectors, marking a dramatic rise from about 40,000 points in June 2023. Although profit-taking led the index to briefly drop to around 99,600 points by mid-morning, buying activity picked up in the afternoon, pushing the index back above 100,000 points.
At the close, the KSE-100 settled at 100,082.77, marking an increase of 813.52 points, or 0.82%. This marks a stunning 60% rise in 2024 alone and a 141% gain since June 2023.
Factors contributing to the index’s strong performance include exchange rate stability, a new IMF agreement, improved earnings in key sectors, and easing monetary policies, which have added liquidity to the stock market. Analysts also highlight a faster-than-expected decline in inflation and interest rates as key drivers for increased investor confidence.
Despite the rally, some experts question whether the momentum will continue. However, predictions suggest the index may rise another 4-5% by the end of 2024, potentially reaching 104,000-105,000 points.
Meanwhile, global stock markets were relatively flat, and the Pakistani rupee saw a slight decline of 0.03% against the US dollar, settling at 278.04.
In terms of trading volume, the all-share index saw an increase, with over 1.16 billion shares changing hands. B.O. Punjab, K-Electric Ltd, and Bank Makramah were among the top volume leaders.
