PSX Reaches Historic High as KSE 100 Hits 61,000 Points

In a notable turn of events, the benchmark KSE-100 Index concluded its seven-session winning streak, shedding 228 points as investors engaged in profit-booking on Wednesday. The KSE-100, fueled by an extensive buying spree driven by various factors, initially opened on a positive note, breaching the historic 61,000 level for the first time.

However, a phase of consolidation and profit-taking ensued as investors chose to secure their gains, pushing the benchmark below the 61,000 level. Despite the recent dip, the KSE-100 has experienced a remarkable surge, boasting a gain of over 50% in this calendar year.

Previously, there was a widespread surge in buying, with index-heavy sectors such as automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs, and the refinery sector all trading in the green.

Tuesday witnessed the market reaching its then-highest historic levels, driven by aggressive buying from local and foreign investors, coupled with institutional support.

This buying spree coincided with a staff-level agreement between Pakistani authorities and the International Monetary Fund (IMF) regarding the first review under the nine-month $3 billion Stand-By Arrangement (SBA).

The government anticipates the IMF’s executive board approval in December, paving the way for Pakistan to receive the second tranche of the SBA. This funding is expected to unlock inflows from other multilateral and bilateral partners.

Market experts attribute the ongoing rally to low valuations and foreign buying. They express confidence that with economic stability, the Pakistani currency will stabilize, and interest rates will decline.

Simultaneously, the Pakistani rupee recorded consecutive gains against the US dollar, appreciating by 0.05% in the inter-bank market on Wednesday, settling at 285.39, marking an increase of Re0.13, according to the State Bank of Pakistan.

Market metrics indicate a decrease in volume on the all-share index to 692.2 million from the previous session's 779.6 million. However, the value of shares rose to Rs27 billion from Rs26.1 billion in the preceding session.

B.O.Punjab led in terms of volume with 50 million shares, followed by Cnergyico PK with 35.6 million shares and Pak Refinery with 35.4 million shares.

On Wednesday, shares of 387 companies were traded, with 143 registering an increase, 231 recording a fall, and 13 remaining unchanged.