The capital market continued its historic rally on Friday, smashing records for the second consecutive day as the KSE-100 Index surpassed the 115,000-point mark.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged by 991.94 points, or 0.87%, to reach an intraday high of 115,172.44.

The market’s bullish momentum is driven by improving macroeconomic indicators, expectations of significant monetary easing, and robust liquidity inflows.

Declining inflation, surging remittance inflows, and ongoing government reforms have further strengthened market sentiment, underscoring growing optimism about Pakistan’s economic prospects.

Pakistan’s foreign reserves remain stable at $16.6 billion as of December 6, 2024, despite a slight dip of $19 million. Reserves held by the State Bank of Pakistan (SBP) rose by $13 million to $12.051 billion—the highest since March 2022—while commercial bank reserves decreased by $32 million to $4.55 billion.

The country’s Current Account Deficit (CAD) narrowed sharply by 79% year-on-year to $217 million in the first two months of FY2025, with August recording a $29 million surplus. This improvement is supported by robust remittance inflows, stable export earnings, and enhanced domestic production.

Exports are projected to reach $33 billion by FY2025, while remittances are expected to rise to $33.5 billion, backed by government incentives and reduced global inflation.

Expectations of significant monetary easing have further boosted market sentiment. On Wednesday, the government reduced Treasury Bill (T-bill) yields by up to 100 basis points.

The auction raised Rs1.256 trillion, exceeding the target of Rs1.2 trillion, with the largest yield cut of 100 basis points applied to three-month papers, reducing the rate to 11.99%.

Analysts widely anticipate the SBP will cut its policy rate by up to 200 basis points during the December 16 Monetary Policy Committee (MPC) meeting, supported by declining inflation, which dropped to 4.9% in November, its lowest level since April 2018.

Economic activity continues to accelerate, reflected by a 62% year-on-year surge in passenger car sales in November and a 50% rise during the first five months of FY2025. In addition, the Asian Development Bank (ADB) has approved $530 million in loans to modernize Pakistan’s power distribution infrastructure and expand social protection programs.

The government revised National Savings Schemes (NSS) profit rates earlier this week, with the Savings Account rate cut by 250 basis points to 13.5%. This is expected to redirect funds from savings instruments into equities, providing further support to market activity.

Saudi Arabia’s extension of a $3 billion deposit and trade agreements worth $560 million have strengthened Pakistan’s foreign reserves and reinforced investor confidence.

The banking sector’s Advance-to-Deposit Ratio (ADR) improved to 47.8% as of November 29, 2024, as banks aim to meet the mandatory 50% threshold by December 31 to avoid penalties.

On Thursday, the KSE-100 Index surged by 3,370.29 points, or 3.04%, to close at 114,180.50, marking the third-largest single-day point-wise rally in PSX history. The index reached an intraday high of 114,408.62, reflecting unparalleled investor confidence.

With a stable macroeconomic outlook, declining inflation, and anticipated monetary easing, the market is expected to maintain its upward trajectory.

The market’s strong performance reflects the impact of stabilising macroeconomic indicators and expectations of further monetary easing.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index surged further, adding 1,086.3 points, or 0.48%, to hit a new intraday high of 104,361.24, with investor sentiment buoyed by a record drop in inflation and hopes for continued economic reforms.

The day’s trading began on a ceremonial note as Federal Minister for Planning Ahsan Iqbal rang the traditional gong to commence trading at the Pakistan Stock Exchange.

During the event, Ahsan Iqbal highlighted the government’s commitment to economic stability and long-term growth. “Crossing the 100,000 mark in the 100-Index showcases Pakistan’s potential to the world,” he said.

He recalled past milestones, saying, “In three years, we attracted $25 billion in investment from China and controlled load-shedding.” He also noted that PricewaterhouseCoopers had projected Pakistan as a developing nation until 2030.

Addressing Pakistan’s recent challenges, Iqbal observed, “In April 2022, when we took charge, Pakistan was on the verge of default. The choice was to save politics or the state.” He credited the government’s tough decisions, such as increasing energy prices and delaying elections, for stabilising the economy.

“Inflation has dropped from 38% to below 5% in two years, and the stock market has soared from 30,000 to 100,000 points,” he noted, highlighting the PSX as one of the most successful markets globally.

PSX Chairperson Dr Shamshad Akhtar highlighted the significance of Pakistan’s robust capital market and its recent achievements.

“Ahsan Iqbal has been a voice for developing countries at the United Nations,” remarked Dr Shamshad Akhtar, who praised the federal minister’s contributions to global and national economic progress.

She noted that the Pakistan Stock Exchange remains one of the best-performing markets in the region and the world, driven by strong economic indicators and policies.

Dr Akhtar emphasised the role of the government in fostering market growth through targeted programs.

“Crossing 100,000 points last week has brought renewed enthusiasm to the market,” she said, adding that the PSX’s ability to finance long-term developmental projects makes it a critical asset for Pakistan’s economic future.

Reflecting on the market’s performance, Dr Akhtar pointed out that the PSX has delivered a 7% return in dollar terms over the past five years.

She also underscored the importance of partnerships with the Chinese consortium in supporting the exchange’s growth journey, asserting that crossing the 100,000-point milestone in the KSE-100 Index highlights Pakistan’s potential to the world.

A significant factor in today’s rally was Prime Minister Shehbaz Sharif’s optimism regarding a potential reduction in the key policy rate by the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) in its upcoming meeting, which analysts believe will provide further impetus to the equity markets.

Addressing a federal cabinet session on Monday, expressed optimism about a further reduction in the SBP’s policy rate.

the premier highlighted the 4.9% inflation rate recorded in November — the lowest in six-and-a-half years — as a game-changer for the country’s economic landscape.

He stressed that such a decline not only alleviates the financial burden on the masses but also paves the way for economic growth. “The decrease in inflation not only reduces the financial burden on the masses but also opens avenues for economic growth,” he said.

The premier added that achieving stability must now transition into fostering GDP growth, exports, industrial development, and job creation.

He attributed the development to effective economic policies and expressed optimism about a further reduction in the SBP’s policy rate.

Inflation data released by the Pakistan Bureau of Statistics (PBS) showed a significant slowdown, beating forecasts of 5.8%-6.8%.

“It is beyond imagination,” said the Prime Minister, recalling inflation levels of 3.5% during the previous tenure of the Pakistan Muslim League-Nawaz (PML-N).

Analysts note that the cooling price pressures reflect a mix of improved monetary measures and stabilising economic fundamentals and view this as a clear signal of easing price pressures, which could prompt the SBP to cut interest rates further, creating a more conducive environment for equity markets.

Monday’s session set the tone for today’s rally, with the KSE-100 gaining 1,917.62 points to close at a record 103,274.94.

Sectors like banking, technology, and oil and gas exploration led the gains last, with banking stocks benefitting significantly from recent regulatory changes, such as the removal of the Minimum Deposit Rate (MDR) requirement for corporate deposits.

As the PSX continues to explore unprecedented territory, market analysts anticipate sustained growth, supported by consistent policy measures, stabilised external accounts, and reduced costs of doing business.

The capital market began the week on a high note, driven by a combination of improving economic indicators, strong corporate earnings, and robust investor confidence.

The market is now in unprecedented territory, reflecting optimism surrounding stabilising macroeconomic conditions and policy reforms aimed at fostering growth.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index on Monday climbed further, adding 931.39 points to reach a new high of 102,288.71 during intraday trading.

This marks an increase of 0.92% from the previous close of 101,357.32, as the market continues to capitalise on the positive momentum that saw it cross the 100,000-point milestone last week.

One of the developments bolstering market sentiment was the receipt of $500 million from the Asian Development Bank (ADB) as part of the Climate Change and Disaster Resilience Enhancement Program.

This inflow has strengthened Pakistan’s foreign exchange reserves, pushing them close to the $12 billion mark. Analysts view this as a pivotal factor in reducing economic uncertainty and enhancing investor optimism.

Sectoral performance has been key to the index’s climb, with commercial banks leading the charge by contributing 1,675 points last week.

The removal of the Minimum Deposit Rate (MDR) requirement for corporate deposits further buoyed the banking sector, which has continued to attract substantial investor interest.

Technology and communication, oil and gas exploration, and property sectors also posted robust gains last week, reflecting broader market participation.

Market analysts credit the rally to the government’s decisive economic reforms and a brighter inflation outlook, with projections suggesting inflation could drop to 5.6%-6.5% by December.

This development has raised expectations that it could lead to a further interest rate cut by the State Bank of Pakistan (SBP), bolstering investors’ confidence.

Lower inflation expectations, coupled with a significant interest rate cut by the SBP earlier in November, have created a favourable environment for equity markets.

The average daily traded value on the ready counter rose by 7.1% week-on-week, reaching Rs36.85 billion, while foreign investors withdrew $15.1 million, countered by strong buying from local insurance companies.

Today’s rise follows the index surpassing the unprecedented 100,000-point mark last week, closing at its then-highest level of 101,357.32 on Friday.

The outgoing week saw the market surge by 3,559.09 points on a weekly basis, driven by a combination of local investor enthusiasm and institutional support.

Despite dips, the market recovered strongly, showcasing resilience amidst political volatility and a favourable regulatory environment.

As the PSX continues to push into uncharted territory, the outlook remains optimistic.

Analysts believe that consistent policy support, stabilised external accounts, and reduced costs of doing business will sustain the market’s upward trajectory.

 

Prime Minister Shehbaz Sharif on Thursday commended the Pakistan Stock Exchange (PSX) for its historic performance, as the benchmark KSE-100 Index crossed the 100,000-point threshold for the first time in history.

In a statement, the prime minister attributed the milestone to strong investor confidence in the government’s policies and the efforts of the economic team to steer the national economy towards stability and growth.

“The stock exchange crossing 100,000 points for the first time reflects the business community’s and investors’ trust in government policies,” PM Shehbaz said.

“The government’s economic team and officials working tirelessly to promote investment in the country deserve praise for achieving this milestone,” he added.

The KSE-100’s remarkable rise is part of a broader market recovery, with the index surging 150% from 40,000 to 100,000 points over the last 17 months.

Experts attribute this surge to a mix of factors, including exchange rate stability, the transition from a $3-billion Stand-By Arrangement to a longer agreement with the International Monetary Fund (IMF), improved earnings from index-heavy sectors, and a general positive sentiment driven by recent monetary easing.

The prime minister also reaffirmed his government’s commitment to economic stability, pointing to achievements such as a decline in inflation, interest rates reduced to 15%, and record-high remittances.

“We will continue to work diligently for the country’s progress,” PM Shehbaz emphasized, vowing to thwart any attempts by the country’s adversaries to destabilize the nation’s development.

The Pakistan Stock Exchange (PSX) achieved a historic milestone on Thursday, as the benchmark KSE-100 Index surged past the 100,000-point mark, reaching an all-time high of 100,346.50 points during intra-day trading.

The remarkable rally of over 1,000 points, equivalent to a 1.09% gain, came on the heels of a volatile week that saw the market experience significant turmoil.

The index opened strong, continuing its upward trajectory after having suffered a major setback earlier in the week due to violent political unrest in Islamabad.

On Tuesday, the market had plummeted by more than 3,500 points, as clashes between the police and protesters from the Pakistan Tehreek-e-Insaf (PTI) party disrupted the nation’s capital.

However, with the party calling off its protest amid a heavy government crackdown, investor confidence was restored, propelling the market to a robust recovery.The PSX’s impressive surge reflects the growing optimism among investors, bolstered by positive economic indicators.

Analysts point to the recent stability in key economic factors, including a favourable outlook on inflation and the ongoing growth in the country’s industrial production, as critical drivers behind the renewed investor enthusiasm.

“The crossing of the 100,000-point threshold is a testament to the resilience of Pakistan’s stock market and the strength of investor confidence, despite the political turbulence,” said a senior market analyst.

“This surge signals that the market is finding its footing as the broader economic landscape improves.”

While the KSE-100’s strong performance indicates optimism, analysts caution that the political landscape will remain a key factor influencing market sentiment.

The PSX’s ability to maintain its momentum will largely depend on the stability of the political situation, which remains volatile due to ongoing political disputes and protests.

Despite the risks, the index’s surge is a hopeful sign for Pakistan’s economic prospects, demonstrating the potential for continued growth as long as the political and economic environment remains conducive to investment.

The KSE-100 index reached an all-time high of 98,467.52 points during intra-day trading, surpassing its previous close of 97,328.39 points.

This surge in the benchmark index was driven by sustained optimism surrounding Pakistan’s macroeconomic outlook, which has contributed to a positive market sentiment.

The day’s trading volume was impressive, with 137.09 million shares traded, valued at Rs9.26 billion.Analysts attribute the rise to investor optimism over economic reforms and fiscal policies, reinforcing the bullish sentiment in the market.

A day earlier, stiock market skyrocketed to unprecedented heights as the KSE-100 index shattered the previous record, surging past the 97,000 mark for the first time in history.

The rally, during which the index soared nearly 1,800 points, was fuelled by a broad-based surge in stocks as investors brushed off political anxiety and responded to the drop in government bond yields as well as a wave of positive economic data, including the current account surplus, higher remittances and exports.

At the heart of the market’s advance were fertiliser stocks, which became a key focus for investors. Surging foreign exchange reserves and speculation about reforms and privatisation of state enterprises added fuel to the market’s remarkable growth.

With brief selling earlier in the day, the index touched its intra-day low of 95,300.21 points. However, a strong buying spree pushed it to the intra-day high of 97,437.15 towards the end of trading.

“Stocks closed bullish, led by across-the-board activity, as investors reacted to the drop in government bond yields and strong economic data, including the current account surplus, remittances, exports and foreign investment,” said Arif Habib Corp MD Ahsan Mehanti.

Surging foreign exchange reserves and speculation about economic reforms and privatisation acted as catalysts for the record surge at the PSX, he added.

At the end of trading, the benchmark KSE-100 index posted a sharp increase of 1,781.94 points, or 1.87%, and settled at 97,328.40.

Topline Securities, in its commentary, observed that the market demonstrated a bullish trajectory, reaching the intra-day high of 97,437. Investor confidence was boosted following the army chief’s meeting with the business community, it said.

Additionally, aggressive buying in the fertiliser sector, particularly Fauji Fertiliser Company and Fauji Fertiliser Bin Qasim, contributed to the positive momentum.

Key contributors to the index included Fauji Fertiliser Company, Engro Ferilisers, Engro Corporation, Fauji Fertiliser Bin Qasim, and Oil and Gas Development Company, which added 1,196 points, Topline said.

Arif Habib Limited (AHL), in its report, wrote that a strong recovery, led by fertiliser stocks, propelled the KSE-100 to new highs, with a gain of 1.87% day-on-day.

A total of 61 stocks advanced, while 37 declined. The most significant contributors to the index’s upside were Fauji Fertiliser Company (+10%), Engro Fertilisers (+5.29%) and Engro Corp (+4.12%).

AHL mentioned that Haleon Pakistan, a leading health and wellness company, was expected to import, launch and later manufacture Centrum multivitamins in Pakistan, marking a significant move in the local market. Heading into Friday’s session, the KSE-100 is currently up 2.8% week-on-week, with the 100,000 milestone within touching distance, it added.

JS Global analyst Mubashir Anis Naviwala commented that the KSE-100 index soared to an all-time high of 97,328, recording an impressive gain of 1,782 points. Significant interest was observed in pharma, exploration and production (E&P), and fertiliser sectors. The analyst advised investors to consider a buy-on-dips strategy, with a particular focus on pharma, fertiliser, automobile, E&P and technology sectors.

Overall trading volumes dropped to 969.9 million shares compared with Wednesday’s tally of 1,138 million. The value of shares traded during the day was Rs35.2 billion.

Shares of 457 companies were traded. Of these, 249 stocks closed higher, 167 fell and 41 remained unchanged.

WorldCall Telecom was the volume leader with trading in 95.6 million shares, gaining Rs0.1 to close at Rs1.38. It was followed by Pace Pakistan with trading in 51.5 million shares, gaining Rs0.32 to close at Rs5.81 and Kohinoor Spinning Mills with 48.3 million shares, losing Rs0.58 to close at Rs8.40.

During the day, foreign investors were net sellers of shares worth Rs1.02 billion, according to the NCCPL.

The Pakistan Stock Exchange (PSX) has achieved a historic milestone, with the benchmark KSE-100 Index surging past the 95,000-point mark for the first time in history.

On Monday, the KSE-100 Index rose by 878 points, reaching a record high of 95,874 points. The rally reflects strong investor confidence, driven by positive market sentiment and encouraging economic indicators.

Market analysts credit this surge to a combination of factors, including robust corporate earnings, foreign investment inflows, and optimism surrounding the country’s economic policies. The restoration of the 95,000-point barrier is seen as a significant milestone in the PSX’s journey.

The development reinforces the PSX’s position as a vital barometer of economic growth and investor confidence in Pakistan. Trading volumes also witnessed a remarkable uptick, indicating increased market activity and interest from investors.

The new record is expected to further attract both domestic and international investors, bolstering the overall economic outlook.

 

Stocks extended their winning streak on Friday, hovering near an all-time intraday high just below the 95,000 mark, as upbeat developments, including the unlikelihood of an International Monetary Fund (IMF)-dictated mini-budget, fuelled a strong risk-on rally.

During the early intraday trade, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Shares Index soared to a record high of 94,982.28 points, reflecting a 790.39-point increase from the previous close of 94,191.89 points.

The market’s upward momentum underscores a growing wave of investor confidence fueled by encouraging economic indicators.

Reacting to the bull run, Ahsan Mehanti, Managing Director & CEO at Arif Habib Commodities, said stocks reached a new all-time high amid receding fears over mini-budget and Islamabad High Court (IHC) relief on banking sector tax levies.

“Falling bank lending rates and rupee stability contributed to the ongoing rally at the capital market,” Mehanti added.

Central bank-held foreign exchange reserves reached a more than two-year high of $11.26 billion as of November 8, while the rupee also rose for the second straight day on Thursday as exporters’ dollar sales and remittances exceeded importers’ demand.

Reports suggest the IMF has raised no concerns about Pakistan meeting its revenue collection targets, easing fears of a mini-budget or new taxation measures. This has bolstered investor sentiment and increased trading activity across sectors.

The mission, led by its mission chief Nathan Porter, is visiting Pakistan to hash out recent developments and the Extended Fund Facility (EFF) programme performance to date.

After meetings with Pakistani authorities, the IMF staff has reportedly given a thumbs-up to an increase in the tax-to-GDP ratio by nearly 1.5 percentage points — a significant achievement by the Federal Bureau of Revenue (FBR).

This improvement means there’s no immediate need for additional tax measures through a supplementary finance bill.

It must be noted that the IMF had previously set a target for Pakistan to boost its tax revenues by 1.5% of GDP in the fiscal year 2024-25, targeting a total increase of 3% throughout the 37-month programme.

Blue chip banking sector stocks remained in the limelight after reports that about a dozen banks in Pakistan have secured a temporary relief from the IHC against a government tax on the lenders if their borrowing to the private sector was lower than the target.

The market began the day with a surge of 547 points, pushing the index to 93,903 points.

As investor confidence grew, the market continued its upward momentum, reaching a peak of 94,217 points with a gain of 816 points at one point.

By 12 PM, the KSE-100 index had risen by 799 points, reaching 94,154 points.

This follows a strong start to the business week, where the index had already crossed the 94,000 mark.

Ealier, Pakistan Stock Exchange (PSX) on Wednesday entered a consolidation phase after breaking many all-time high records in recent weeks and closed with a modest gain of 131 points on investor interest mainly in second and third-tier stocks.

The KSE-100 index oscillated between the high of 93,804 points and low of 92,943 points, before closing the day with some recovery, driven by a robust car sales data and easing fears of a mini-budget announcement. It came despite hefty stock selling by foreign investors.

In the morning, the market was pulled down to the intra-day low by profit-taking, however, it soon recovered owing to buying interest in selected stocks, which took the index into the positive territory.

“Stocks showed some recovery on the back of second and third-tier shares because of their strong valuations,” said Ahsan Mehanti, MD of Arif Habib Corporation.

“Upbeat data of car sales that surged 112% year-on-year in October and FBR’s assurance to the IMF about dropping contingency measures for a mini-budget played the role of catalysts in positive close at the PSX,” he said.

At the close of trading, the benchmark KSE-100 index recorded an increase of 130.86 points, or 0.14%, to 93,355.43.

Topline Securities, in its review, wrote that trading activity remained strong throughout the day, with 806 million shares changing hands, valuing at Rs31 billion.

It said the market exhibited a consolidation phase, with the KSE-100 index reaching the peak of 93,804 and dipping to the low of 92,943, before settling at 93,355, up 131 points.

Notably, consistent buying by mutual funds supported the market in the recent rally.

The index was boosted by positive contribution from Mari Petroleum, Lucky Cement, The Searle Company, Engro Corp and Pakistan Oilfields, which collectively added 461 points.

Conversely, Oil and Gas Development Company, Fauji Fertiliser Company and Meezan Bank experienced some profit-taking, resulting in a combined loss of 213 points, Topline added.

In its research report, AHL commented that Wednesday’s trading session was unpredictable, with the KSE-100 index consolidating within the 92,000-94,000 range.

A total of 40 stocks rose, while 57 declined. Among the top contributors to the index gains were Mari Petroleum (+7.07%), Lucky Cement (+2.89%) and The Searle Company (+10%), it said.

Among corporate developments, Bank Alfalah (-0.01%) withdrew its buy offer for Samba Bank (-9.13%) after Saudi National Bank terminated the process of selling its 84.51% shareholding in Samba Bank, AHL reported.

In addition, Rousch Power approved a negotiated settlement to end its power purchase agreement, which was originally due to expire in 2032, and receive payments till the end of December 2024, AHL added.

JS Global analyst Mubashir Anis Naviwala wrote that initially the market experienced some consolidation, with the index reaching the intra-day low of 92,943.

However, he said, bulls took charge and the market began to recover, hitting the high of 93,803 points. The KSE-100 index ultimately closed at 93,355, gaining 131 points.

Overall trading volumes increased to 807.1 million shares compared with Tuesday’s tally of 792.9 million. The value of shares traded during the day was Rs31.7 billion.

Shares of 450 companies were traded. Of these, 196 stocks closed higher, 191 fell and 63 remained unchanged.

WorldCall Telecom was the volume leader with trading in 43.3 million shares, losing Rs0.01 to close at Rs1.26.

It was followed by Waves Home Appliances with 33.2 million shares, gaining Rs0.90 to close at Rs8.79, and Pakistan Refinery with 31.5 million shares, remaining unchanged at Rs26.88.

During the day, foreign investors sold shares worth a net Rs1.39 billion, according to the NCCPL.

The Pakistan Stock Exchange (PSX) witnessed a strong bullish trend at the start of the new trading week, with the benchmark KSE-100 Index surging to unprecedented levels.

The index rose by 551 points, reaching an all-time high of 93,845 points, marking the highest level in the stock market’s history.

The trading session opened with robust gains, pushing the KSE-100 Index up by 408 points early on, bringing it to 93,700 before further gains propelled it even higher.

Also Read: PSX-100 index hits historic high, crosses 93,000 points

For the first time in history, the Pakistan Stock Exchange (PSX) surged past the 93,000-point milestone on Friday, as the KSE-100 index rose by 480 points, reaching a record high of 93,001 points.

Economists attribute the market’s growth to the anticipation of Pakistan’s improved economic rating and positive outlook on economic reforms. The session opened on a high note, with the 100 index initially gaining 250 points, climbing to 92,770 points before the day’s peak. The market closed the previous day at 92,520 points.