The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index reached an unprecedented milestone on Wednesday, closing above 80,000 points. This record high was fueled by rising exports, hopes for an International Monetary Fund (IMF) bailout package, and other favorable economic developments.
Key Highlights:
- Market Performance:
- The KSE-100 index climbed by 680.78 points, or 0.86%, to close at 80,233.67 points, up from 79,552.89 points in the previous session.
- The day’s highest index level was 80,405.24 points, while the lowest was 79,697.25 points.
- Driving Factors:
- Analyst Ahsan Mehanti from Arif Habib Corp attributed the record close to strong corporate earnings, a 10.54% rise in exports to $30.7 billion, and a 12.3% narrowing of the trade deficit to $24.09 billion in FY24.
- Government timelines for the privatization of state-owned enterprises (SOEs), including Pakistan International Airlines (PIA), and expectations of robust corporate payouts also played significant roles.
- Sector Performance:
- The cement sector saw positive momentum, with companies like KOHC, PIOC, LUCK, and MLCF showing growth despite a 4.6% drop in domestic cement sales.
- The banking sector attracted considerable investor interest, with stocks like SBL, AKBL, NBP, HBL, and JSBL closing higher.
- Trading Activity:
- Traded shares increased to 536.580 million from 413.153 million, while the trading value rose to Rs22.722 billion from Rs16.597 billion.
- Of the 447 companies active during the session, 256 closed in green, 135 in red, and 56 remained unchanged.
- Key Contributors:
- HBL, POL, HUBC, NBP, and SYS were major contributors to the positive index movement, collectively adding 388 points.
- Nestle Pakistan Limited and Philip Morris (Pakistan) Limited recorded the highest share price increases, while Unilever Pakistan Foods Limited and Rafhan Maize Products Company Limited saw significant declines.
- Future Outlook:
- Brokerage Arif Habib Ltd noted the significant gain as the KSE-100 index broke its previous range, closing above the 80k mark.
- The finance minister’s expectations of securing a staff-level agreement with the IMF for a bailout package exceeding $6 billion this month are anticipated to boost investor confidence.
- For the remainder of the week, the 80k level is expected to serve as a support zone, facilitating further market growth driven by strong corporate performances and positive economic developments.
The market’s break above the 80k mark is a historic milestone, signaling potential for continued growth and stability in the coming sessions, with significant attention on the privatization of PIA and other SOEs.
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