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 PSX Hits Record High as KSE-100 Index Surges to 102,288 Points

 

KARACHI, December 2, 2024: The capital market kicked off the week on a positive note, buoyed by improving economic indicators, strong corporate earnings, and growing investor confidence.

The Pakistan Stock Exchange (PSX) continued its bullish streak, with the benchmark KSE-100 Index surging by 931.39 points during intraday trading on Monday, reaching a new high of 102,288.71.

This marked a 0.92% increase from the previous close of 101,357.32, as the market capitalized on the momentum that saw it surpass the 100,000-point milestone just the week before.

A major driver behind the market’s rally was the recent receipt of $500 million from the Asian Development Bank (ADB) under the Climate Change and Disaster Resilience Enhancement Program.

Read More: PSX Reaches New Heights with 100,000 Transactions

This infusion has strengthened Pakistan’s foreign exchange reserves, pushing them closer to the $12 billion mark, reducing economic uncertainty, and boosting investor confidence.

Sector performance has been a crucial factor in the market’s rise, with the banking sector leading the charge.

Commercial banks contributed 1,675 points to the market’s gains last week, further supported by the removal of the Minimum Deposit Rate (MDR) requirement for corporate deposits.

Other sectors, including technology, communications, oil and gas exploration, and real estate, also posted strong gains, reflecting broad-based market participation.

Market analysts attribute the rally to the government’s decisive economic reforms and a favorable inflation outlook.

Projections suggest inflation could fall to between 5.6% and 6.5% by December, increasing expectations of further interest rate cuts by the State Bank of Pakistan (SBP).

This has created a favorable environment for equity markets, with the recent SBP rate cut in early November also adding to investor optimism.

Read More: PSX Reaches New Heights with 100,000 Transactions

The average daily traded value on the ready counter saw a week-on-week increase of 7.1%, reaching Rs36.85 billion. While foreign investors withdrew $15.1 million, local insurance companies provided strong buying support, helping to sustain market momentum.

Despite occasional dips, the market has shown resilience, recovering quickly from setbacks and maintaining its upward trajectory. The outlook for th

e PSX remains positive, with analysts predicting sustained growth driven by consistent policy support, stabilizing external accounts, and a more favorable regulatory environment.

 

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