Stocks on Wednesday roared to a new high shortly after the opening bell, with the rally fueled by strong fundamentals and improved fiscal projections remaining in full swing, despite renewed political tensions triggered by an opposition protest call for November 24.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an all-time high of 96,711.33 points during intraday trading, gaining 854.67 points or 0.89% compared to Tuesday’s close of 95,856.66.
The sustained upward momentum underscores growing investor optimism amid a recovering economy.
Sectors, including cement, banking, fertiliser, oil and gas exploration, oil marketing, and power generation remained in the limelight.
Notable gains were posted by index-heavy names such as K-Electric, Pakistan State Oil, Shell, Oil and Gas Development Company, Pakistan Petroleum, Mari Petroleum, Meezan Bank, National Bank of Pakistan, and Habib Bank.
Factors supporting the rally are falling inflation, a 32% year-on-year surge in Foreign Direct Investment (FDI) to $904 million during July-October, and a current account surplus of $349 million for October 2024.
The State Bank of Pakistan (SBP) reported that October marked the third consecutive monthly current account surplus, driven by a 7% month-on-month and 24% year-on-year rise in remittances.
Foreign exchange reserves have also reached a two-year high, with projections exceeding $11 billion in the coming weeks.
Inflation trends further bolstered investor sentiment. November’s Consumer Price Index (CPI) is projected to fall between 4.5% and 5%, marking a historic decline—the first time in 78 months inflation is anticipated to drop below 5%. For FY25, inflation is expected to average around 7.5%.
The technology sector led the rally, supported by a significant rise in export remittances from the Information and Communication Technology (ICT) sector. Remittances surged 34.9% year-on-year to $1.206 billion during July-October 2024, with October alone witnessing a 38.6% increase to $330 million.
This follows Tuesday’s remarkable session, where the KSE-100 Index touched an intraday peak of 96,036 points before closing at 95,857, marking a gain of 860.99 points or 0.91%.
This is a developing story and is being updated with more details.
