There was no stopping the KSE-100 on Thursday as a wider market buying spree propelled the benchmark index to settle above the 108,000 level, a new record high, with a gain of over 3,000 points.
At close, the benchmark index was hovering at 108,238.96, an increase of 3,134.63 points or 2.98%.
It was a day that saw the KSE-100 gradually increase throughout the session as buying continued across the wider market. Interest was seen in key sectors including oil and gas exploration companies, OMCs, refinery, power generation, fertilizer and commercial banks. Index-heavy stocks including MARI, NRL, HUBCO, PSO, SNGPL, NBP, MEBL and MCB traded in the green.
“The PSX achieved another milestone as market activity surged to a ~19 year high, with a traded value of Rs63.0 billion ($227 million),” said Arif Habib Limited (AHL) in a note.
“This marks the highest activity in the regular market since 17-Apr-2006,” it added.
Experts say the ongoing buying by local institutions, coupled with high trading volumes, reflects strong investor confidence, which is fuelled by expectations of declining interest rates in the upcoming Monetary Policy Committee (MPC) meeting.
The MPC is scheduled to meet on December 16, 2024.
On Wednesday, PSX maintained its bullish trend and hit new levels on the back of investors’ strong interest in expectations of further decrease in interest rates in the upcoming monetary policy meeting.
The benchmark index surged by 545.26 points and closed at its new highest-ever level of 105,104.34 points.
Internationally, Asian stocks face selling pressure from foreign investors for a second consecutive month in November amid worries over potential US tariff hikes on regional exports under the incoming Donald Trump administration next year.
Foreigners net withdrew $15.88 billion out of equity markets in Taiwan, South Korea, India, Thailand, Indonesia, Vietnam and the Philippines, following a net $15.38 billion worth of sales in the prior month, LSEG data showed. It was their largest monthly net selling since June 2022.
Last month, Trump pledged to impose significant tariffs on the United States’ three largest trading partners, including China, a move that could impact regional exports heavily reliant on strong supply chains with China.
Source: Brecorder
