KARACHI, November 28, 2024: The Pakistan Stock Exchange (PSX) hit a historic milestone on Thursday, as the KSE-100 Index soared past the 100,000-point mark for the first time, closing at a record high of 100,346.50 points.
This significant achievement is a reflection of strong investor confidence, buoyed by favorable economic indicators and the government’s continued efforts to implement reforms.
The KSE-100 Index surged by 1,077.25 points, or 1.09%, from its previous close of 99,269.25 points during intra-day trading.
The market had faced a setback two days earlier, following violent protests related to PTI’s march on Islamabad, which caused the index to drop by over 3,500 points.
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However, after the party called off its protest and a government crackdown ensued, the market quickly recovered, rising by more than 4,600 points to close at 99,269.25 points.
Experts attributed the market’s historic performance to several key factors, particularly the government’s steadfast commitment to economic reforms.
Samiullah Tariq, head of research at Pak-Kuwait Investment Company, pointed to falling yields and lower inflation expectations as major drivers of the market’s positive momentum.
According to the finance ministry’s latest monthly economic report, inflation is expected to ease to between 5.8% and 6.8% in November, with further reductions expected in December, fueling investor optimism.
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The KSE-100’s impressive performance also reflects a 60% year-to-date gain, with 47% driven by capital gains and 13% from dividend yields.
Key sectors such as commercial banks, fertilizers, and oil and gas exploration contributed significantly to the surge, with leading stocks like Fauji Fertilizer and United Bank Ltd playing a pivotal role in the index’s rise.
Tariq also highlighted that the government’s consistent adherence to the International Monetary Fund’s (IMF) program, along with growing expectations of increased mutual fund investments in equities, played an essential role in sustaining the market’s upward trajectory.