The Pakistan Stock Exchange (PSX) witnessed a significant milestone as the benchmark KSE-100 Index surged past the 70,000-point mark for the first time on Tuesday, marking a historic achievement in the country’s financial markets. By midday, the index had reached 70,438.68, registering an impressive increase of 818.70 points or 1.18%. This rally comes amid a sustained period of bullish sentiment, with the KSE-100 consistently setting new record highs in recent weeks. The positive momentum can be attributed to several factors driving investor confidence, including expectations of a forthcoming monetary easing cycle, declining inflation rates, increased inflows of foreign investment, and an overall positive outlook for Pakistan’s economy.
The current upward trajectory in the PSX is notably broad-based, with various sectors contributing to the index’s climb. Sectors such as cement, banking, automobiles, and energy have been particularly influential in driving the market rally. On Tuesday, there was notable buying activity observed in sectors including automobile assemblers, commercial banks, and oil and gas exploration companies, further fueling the index’s ascent. Additionally, heavyweight stocks such as Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDC), Pakistan State Oil (PSO), Sui Northern Gas Pipelines Limited (SNGPL), Meezan Bank (MEBL), and Honda Atlas Cars (HCAR) were trading positively, contributing to the overall bullish sentiment.
Commenting on the market’s performance, Mohammed Sohail, CEO of Topline Securities, highlighted the significant milestones achieved and attributed the market’s success to positive developments related to Saudi investments and deposits. He also underscored the role of continuous foreign buying activity, which has provided crucial support to the equity market. Sohail noted that since the end of June, the KSE-100 has risen by nearly 70%, indicating the resilience and attractiveness of Pakistan’s equity market to investors both domestically and internationally. Overall, the surge past the 70,000-point mark reflects growing confidence in Pakistan’s economic prospects and the resilience of its financial markets amidst a challenging global environment.