PSX Hits Another All-Time High as KSE-100 Index Breaches 94,000 Barrier
The Pakistan Stock Exchange (PSX) experienced a significant bullish trend today, with the KSE-100 index surpassing 94,000 points during intra-day trading on Thursday. This remarkable performance highlights the growing investor confidence and the resilience of the market amidst global financial fluctuations.
Morning Surge Sets the Tone
The trading day began with a notable surge of 547 points, which pushed the index to 93,903 points. This early momentum set a positive tone for the rest of the trading session.
As investor confidence grew, the market continued its upward trajectory, reaching a peak of 94,217 points, marking a gain of 816 points at one stage. By midday, the KSE-100 index had risen by 799 points, achieving a level of 94,154 points.
A Strong Start to the Week
This surge follows a robust start to the business week, where the index had already crossed the 94,000 mark. On Wednesday, the Pakistan Stock Exchange entered a consolidation phase after breaking numerous all-time high records in recent weeks. The market closed with a modest gain of 131 points, driven primarily by investor interest in second and third-tier stocks.
Market Dynamics and Influencing Factors
The KSE-100 index oscillated between a high of 93,804 points and a low of 92,943 points before closing the day with some recovery. This recovery was driven by robust car sales data and easing fears of a mini-budget announcement, despite substantial stock selling by foreign investors.
In the morning, the market experienced a dip to an intra-day low due to profit-taking. However, it soon recovered owing to buying interest in selected stocks, which propelled the index into positive territory.
“Stocks showed some recovery on the back of second and third-tier shares because of their strong valuations,” said Ahsan Mehanti, Managing Director 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 added.
Consolidation Phase and Trading Activity
At the close of trading, the benchmark KSE-100 index recorded an increase of 130.86 points, or 0.14%, to 93,355.43 points. Topline Securities, in its review, noted that trading activity remained robust throughout the day, with 806 million shares changing hands, valued at Rs31 billion.
The market exhibited a consolidation phase, with the KSE-100 index reaching a peak of 93,804 and dipping to a low of 92,943 before settling at 93,355, up by 131 points. Notably, consistent buying by mutual funds supported the market in the recent rally.
Key Contributors and Sector Performance
The index received positive contributions from companies like 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, as per Topline’s report.
Corporate Developments and Market Sentiment
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%).
In terms of corporate developments, Bank Alfalah withdrew its buy offer for Samba Bank after Saudi National Bank terminated the process of selling its 84.51% shareholding in Samba Bank. Additionally, 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.
Analyst Insights and Future Projections
JS Global analyst Mubashir Anis Naviwala noted that initially, the market experienced some consolidation, reaching an intra-day low of 92,943 points. However, bulls took charge, and the market began to recover, hitting a high of 93,803 points. Ultimately, the KSE-100 index closed at 93,355, gaining 131 points.
Trading Volumes and Market Participation
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, with 196 stocks closing higher, 191 falling, and 63 remaining 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.
Foreign Investors and Market Trends
During the day, foreign investors sold shares worth a net Rs1.39 billion, according to the National Clearing Company of Pakistan Limited (NCCPL). This selling by foreign investors did not significantly impact the market’s upward trend, indicating strong domestic investor confidence.
FAQs
What is the KSE-100 Index?
The KSE-100 Index is a stock index representing the top 100 companies listed on the Pakistan Stock Exchange, based on their market capitalization.
Why did the PSX experience a surge today?
The surge in PSX was primarily due to strong investor confidence, robust car sales data, and easing fears of a mini-budget announcement.
What sectors contributed to the KSE-100 index gains?
Key contributors included companies from the petroleum, cement, pharmaceutical, and oilfields sectors.
How did foreign investors influence the market?
Foreign investors sold shares worth a net Rs1.39 billion, which did not significantly impact the market’s overall positive trend.
What are second and third-tier stocks?
Second and third-tier stocks refer to smaller, less prominent companies that are not included in the top tier of the stock market but can offer strong valuations and investment opportunities.
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