The Pakistan Stock Exchange (PSX) continued its bullish momentum with a significant surge of 892 points on Tuesday, driving the KSE-100 index to an all-time high of 79,717.31 points by 2:18 PM, marking a notable 1.12% increase from its previous close at 78,825 points.
Last Friday, the PSX secured its position as the top-performing market globally for the fiscal year 2023-24, achieving an outstanding 89% gain (or 94% in US dollar terms) and closing at a record high of 78,445 points.
Throughout the year, particularly in June 2024, the market set numerous records, with market capitalization exceeding Rs10 trillion.
Starting the new fiscal year positively, the PSX opened with a gain of almost 380 points. Despite an initially lackluster performance with an intra-day low of 78,427.79 points, the market gained momentum, ultimately rising by 675 points to reach 79,120 points by the end of the day.
This upward trend was bolstered by a modest Consumer Price Index (CPI) inflation rate of 12.6% year-on-year in June 2024 and anticipation surrounding an IMF loan agreement ranging between $6-8 billion.
Ahsan Mehanti, Managing Director of Arif Habib Corp, attributed the market’s rise to these factors, stating, “Stocks closed higher amid a CPI inflation rate of 12.6% in June 2024 and the finance minister’s confirmation of ongoing positive negotiations for a $6-8 billion IMF loan agreement.”
Muhammad Sohail, CEO of Topline Securities, highlighted the increased investor confidence evidenced by five initial public offerings (IPOs) in FY24 compared to just one in FY23. Additionally, foreign investors’ substantial investment in T-bills, amounting to over $300 million in FY24 (based on 11 months of data), contrasted sharply with their $41 million divestment in FY23.
