Record rally lifts KSE-100 past 156,000 mark for first time

Bulls extended their historic rally at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index climbing more than 1,800 points to surpass the 156,000 mark for the first time.

According to the PSX website, the market opened on a bullish note and touched the highest level of 156,080.79 points at 10:20 am, an increase of 1,803 points from the previous close of 154,277.19 points. 

As of 11:20 am, the KSE-100 was hovering at 155,636.72 levels, with an increase of 1359.53 points or 0.88%. 

Despite the devastation caused to the agriculture, livestock, and housing sectors by flash floods in Punjab and Khyber Pakhtunkhwa (KP), investor confidence is being witnessed in sectors related to construction, recovery, and energy. 

Experts believe that investors are keen to invest in the cement sector due to post-flood reconstruction activities in some areas of central Punjab and KP.

Strong buying was seen in major sectors including cement, commercial banks, oil and gas exploration, oil marketing companies, and power generation, while index-heavy stocks such as HBL, MCB, MEBL, HUBCO, MARI, OGDC, PPL, POL, SSGC, SNGPL, DGKC and LUCK traded higher.

Last week, the KSE-100 Index rose 5,659 points, or 3.8%, closing at 154,277—the fourth-highest weekly finish this year. Gains were supported by local investor demand, optimism over the Prime Minister’s China visit, and positive macroeconomic signals, even as foreign investors remained net sellers. PM Shehbaz Sharif concluded his China visit, securing $8.5 billion in MoUs and JVs at the second Pak-China investment conference.

The cement sector led gains throughout the week, contributing 1,178 points, driven by a pick-up in domestic demand as local offtakes recorded double-digit growth for the second consecutive month, alongside rising mortgage lending. Commercial banks followed with 1,087 points on the back of robust results.

According to AKD Securities, the stock market is expected to remain positive in the coming weeks, with the upcoming Monetary Policy Committee’s meeting and any developments over circular debt remaining in the limelight. 

The brokerage firm said that the KSE-100 is anticipated to sustain its upward trajectory, with a target of 165,215 points by December 2025, primarily driven by strong earnings in fertilizers, sustained ROEs in banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability. 

Globally, stocks rose and the dollar wobbled on Monday after dismal US labour data sealed the case for an interest rate cut this month, while the yen fell as investors girded for uncertainty in Japan following the resignation of Prime Minister Shigeru Ishiba.

European futures advanced 0.45%, while S&P 500 futures pointed 0.08% higher on Monday after a volatile session on Friday where the index hit a record high but then closed 0.3% lower.

The Nikkei surged 1.8%, just shy of its recent record-high. The benchmark 10-year Japanese government bond (JGB) yield was flat at 1.57%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.4% higher. Hong Kong’s Hang Seng index gained 0.35%.