Pakistan Stock Exchange Breaks Records, KSE-100 Index Surpasses 90,000 Mark for First Time
The Pakistan Stock Exchange (PSX) continued its remarkable rally today, with the KSE-100 Index reaching historic highs by crossing the 89,000 and 90,000 levels for the first time ever. The index surged by 683 points, or 0.77%, to reach 89,629 at 9:34 am, and later touched the 90,000 mark, setting a new milestone.
Recent Gains and Historic Milestones
Over recent days, the PSX has achieved multiple records:
- October 22: The KSE-100 index added 643 points (0.75%) to achieve an all-time high of 86,701, before closing with a 409-point gain at 86,466.
- October 21: The index rose 807 points (0.95%) to close at 86,570, breaking its previous record of 88,000 and reaching new levels.
Key Drivers of the Bullish Trend
The upward trend is attributed to multiple economic and policy factors:
- Anticipated Interest Rate Reduction: Samiullah Tariq, Head of Research at Pakistan Kuwait Investment Company, pointed to expectations of lower interest rates and bond yield declines, leading to increased investment in equities.
- Institutional Buying: Brokerage firms such as Topline Securities and Ismail Iqbal Securities reported strong local buying, spurred by improved economic indicators and favorable corporate earnings. Muhammad Sohail, Topline Securities CEO, highlighted the interest in stocks due to reduced inflation and the likelihood of improved bond yields.
- Political Stability: Analysts also noted that the recent passage of the 26th Constitutional Amendment has provided political stability, adding optimism for continued economic progress. Yusuf M Farooq, Director of Research at Chase Securities, observed that investor sentiment has improved as a result of this development.
Analyst Outlook on Future Trends
Experts expect that if inflation continues to decline and interest rates remain low, the equity market could see further gains.
The PSX’s recent achievements signal confidence in Pakistan’s economic resilience, with corporate earnings and policy shifts helping bolster investor sentiment and optimism for a more stable economic future.