Bulls extended their historic rally to new highs at the Pakistan Stock Exchange (PSX) on Tuesday, with the benchmark KSE-100 Index settling above the 95,000 level for the first time.
According to the PSX website, the KSE-100 closed at 95,856.66 points, up by 860.99 points or 0.91% from the previous close of 94,995.67 points. The index also crossed the 96,036.48 level during an intraday rally.
A widespread buying spree was witnessed in key sectors, including oil and gas exploration companies (E&P), oil and gas marketing companies (OMCs), sugar and allied industries, technology and communication, and paper, board, and packaging.
Key sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, power generation, and refineries, witnessed high buying activity. Index heavyweights such as HASCOL, TPLP, PTC, SNGP, SEARL and WTL were trading in the green zone.
Market analysts attributed this positive momentum to non-stop buying by local funds following a sharp decline in interest rates coupled with growing economic optimism.
In a related development, Pakistan’s Consumer Price Index (CPI) for November 2024 is projected to clock in at 4.5-5% year-on-year, according to data released by brokerage firm Topline Pakistan.
Pakistan’s current account recorded a surplus of $349 million in October 2024, marking the third consecutive month in positive territory.
Cumulatively, the current account surplus for the first four months of FY25 (July-October) stood at $218 million, an improvement from the $1.53 billion deficit in the same period last year.
Net Foreign Direct Investment (FDI) in Pakistan grew by 32.3% during the first four months of the current fiscal year (FY25), reaching $904.3 million.
On the other hand, Prime Minister Shehbaz Sharif directed the authorities to track down tax evaders and their abettors to ensure everyone pays the taxes they owe. The directive came during a briefing by the Finance Ministry about the country’s economy and a recent meeting with the International Monetary Fund (IMF) delegation.
The PSX has been on a winning streak for some weeks mainly supported by increased investor confidence and improved economic indicators. Last week, the stock market gained 1.6% WoW, closing at a record high of 94,763 points.
According to a recent report by Bloomberg, Pakistan’s stocks are expected to advance by more than a quarter by the end of next year 2025 as the nation’s economy shows improvement under a loan program with the IMF and the currency stabilizes.
The benchmark KSE-100 Index is forecast to increase to 127,000 points by December 2025, or a 34% rise, from the 94,704 points it closed last Friday, according to Topline Securities Ltd. in a report announced on November 16, Arif Habib Ltd. targets the index to reach 120,000 points, a gain of 27%.
“The stage is set for a potential market re-rating with declining interest rates, a stable rupee, and improving macroeconomic indicators,” Karachi-based brokerage Arif Habib commented in a report.
