KARACHI: The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index reached a new record high on Monday, gaining 232 points to close at 94,995.67, just shy of the 95,000 milestone. The index saw buying momentum early in the session, peaking at 95,307.92, before experiencing a brief sell-off that pushed it to an intraday low of 94,620.45. However, a bullish recovery in the latter half of the day drove the index back up.
Key Drivers of Market Performance
- Investor sentiment improved following a positive statement from the International Monetary Fund (IMF) after its delegation’s visit to Pakistan.
- Major contributors to the index’s gain included FFC, HBL, PSEL, SNGP, and LUCK, collectively adding 328 points. Conversely, UBL, EFERT, and HUBC faced profit-taking, dragging the index down by 164 points.
Economic Highlights Supporting Confidence
- Current Account Surplus: Pakistan posted a surplus of $349 million in October 2024, compared to a $287 million deficit in October 2023, as per the State Bank of Pakistan (SBP).
- Foreign Direct Investment (FDI): Net FDI increased by 32.3% in the first four months of FY25, reaching $904.3 million.
- Stronger Currency: Pakistan’s Real Effective Exchange Rate (REER) rose to 100.86 in October, indicating a stronger rupee value compared to September’s 98.64.
Trading Volume and Market Trends
- Trading volume on the all-share index declined to 765.21 million shares, compared to 893.17 million in the previous session.
- The value of traded shares dropped to Rs23.92 billion from Rs30.81 billion on Friday.
- Top Volume Leaders: Hascol Petroleum (85.14 million shares), Fauji Foods Ltd (60.50 million shares), and K-Electric Ltd (58.38 million shares).
Global and Local Market Influences
Global markets remained mixed, with European and Asian stocks fluctuating and Wall Street retreating on concerns over US Federal Reserve interest rate policies. Domestically, the rupee depreciated slightly by 0.07% against the US dollar, closing at 277.86 in the interbank market.
Despite external pressures, the PSX continues to reflect investor optimism, buoyed by economic developments and robust corporate performance.
