Muhammad Sajid

The Pakistan Stock Exchange (PSX) reached a new milestone today. The KSE-100 index climbed to 102,664.34 points. This is the highest it has ever been. The index rose by 1,307.02 points, a 1.29% increase during today’s trading.

At 11:15 AM, the market surged to an intraday high of 102,737.83 points. The lowest point of the day was 101,921.20 points. Trading volume was high, with 345,041,632 shares traded. The total value of the trades reached 11,381,780,782 PKR.

This rise continues the market’s positive trend. The Pakistan Stock Exchange has been performing well for weeks. The KSE-100 index is now comfortably above the 102,000-point level. Analysts say that investor confidence is strong. Favorable economic signals are also helping the market grow. The stock market’s strong performance is good news for the broader economy.

Last week, the PSX surpassed the 100,000-point mark. It closed at 101,357 points, up by 3.6%. Earlier in the week, the market faced challenges. Political unrest caused a drop of 3,500 points. However, things changed when the Pakistan Tehreek-e-Insaf (PTI) canceled protests. The market quickly recovered. The banking sector led the recovery after the minimum deposit rate (MDR) for conventional banks was removed. Inflation expectations also eased.

Despite foreign selling of $15 million, local investors kept the market strong. Mutual funds and insurance companies bought many shares. Positive economic indicators helped the rally. Government bond yields dropped by 61 to 85 basis points. The government raised Rs616 billion in a T-bills auction, short of the Rs800 billion target. This boosted market sentiment.

Auto financing grew, and the country’s foreign currency reserves increased. A $500 million loan from the Asian Development Bank (ADB) helped boost reserves. Investor sentiment is high, which is expected to keep the KSE-100 index strong next week.

Weekly Market Movement

At the start of the week, the Pakistan Stock Exchange hit a new high of 98,080 points, gaining 280 points. Strong interest in the banking sector and easing political tensions drove this rise. The next day, the market faced its biggest single-day drop, falling 3,506 points (3.57%) due to political instability fears. On Wednesday, the PSX made a remarkable recovery, rising nearly 4,700 points—the biggest single-day rebound in its history.

The market crossed the 100,000-point milestone the following day. Analysts say the rally was due to better investor sentiment. Lower interest rates and reduced inflation made stocks more attractive. On Friday, the market surged almost 1,300 points, reaching over 101,000 points. This rise was led by gains in the oil, banking, and pharmaceutical sectors. The KSE-100 index closed at 101,357 points, up 3.64% for the week.

JS Global analyst Abdul Basit said the bullish trend continued. The slight drop earlier in the week was offset by the strong recovery after PTI canceled protests. Trading volumes were slightly down by 1% to 979 million shares. Foreign selling was $15 million, but local buying by mutual funds and insurance companies kept the momentum.

Basit also mentioned that changes in the banking sector, especially the MDR changes, kept bank stocks active. In the recent T-bills auction, the government raised Rs616 billion, and yields dropped by 61-85 basis points across different terms.

Auto financing recovered, reaching Rs236 billion in October 2024, up 3.7% from the previous month. The State Bank of Pakistan’s foreign currency reserves increased by $131 million to $11.4 billion. An additional $500 million from the ADB’s climate financing program is expected to boost reserves next week.

AHL Research noted that lower inflation and a strong rally in commercial banks drove the PSX’s recovery. The Pakistani rupee slightly depreciated by 0.10% to Rs278.04 against the US dollar.

Sector and Stock Highlights

Several sectors contributed to the rise:

• Commercial Banks: +1,676 points
• Technology and Communication: +349 points
• Oil and Gas Exploration: +284 points
• Oil and Gas Marketing: +260 points
• Cement: +234 points

Top individual stocks included:

• Habib Bank Ltd: +694 points
• Bank AL Habib: +538 points
• Pakistan Petroleum: +274 points
• Systems Ltd: +255 points
• Bank Alfalah: +205 points

AHL Research forecasts that the market will likely keep its positive trend next week. They expect inflation to drop further, with November projections at 4.7%. Some stocks are trading at attractive prices, attracting more investors.

Foreign selling for the week totaled $15.1 million. This is an improvement from the previous week’s net selling of $32.9 million.