Shares at the Pakistan Stock Exchange (PSX) reached a new all-time high on Wednesday. The benchmark KSE-100 index crossed the 87,000-point barrier, closing at 87,194.53 points. This marked an increase of 727.96 points or 0.84% from the previous close of 86,466.57 points. The index even reached an intraday high of 87,309.22 points.
Mohammed Sohail, CEO of Topline Securities, attributed this significant rise to several factors. He noted the decline in secondary market yields, political stability, the successful Shanghai Cooperation Organisation (SCO) summit, and local mutual fund buying as major contributors. The trading session reflected positive momentum, fueled by expectations of an upcoming rate cut in the monetary policy announcement scheduled for November 4.
Investor enthusiasm also surged for K-Electric Limited (KEL) following the announcement that the National Electric Power Regulatory Authority approved the generation tariff for all its power plants effective from June 2023. This news sparked increased interest in KEL shares.
Yousuf M Farooq, director of research at Chase Securities, echoed Sohail’s sentiments. He emphasized the market’s anticipation of a substantial rate cut in the next monetary policy announcement. He noted that three-month treasury bills were now trading at 14.24% in the secondary market.
Political Clarity Fuels Market Optimism
Sana Tawfik, head of research at Arif Habib Limited, added her perspective on the rally. She linked the surge in the index to recent clarity on the political front, particularly following the passage of the 26th constitutional amendment. Improving macroeconomic indicators, expectations regarding monetary policy, and the successful SCO summit also played vital roles in boosting investor confidence.
On Wednesday, a total of 699,294,030 shares were traded, slightly down from 722,209,194 shares the previous trading day. The total value of shares traded stood at Rs 26.824 billion, an increase from Rs 25.024 billion on the last trading day.
The trading session saw 447 companies transacting shares. Out of these, 214 recorded gains, while 173 sustained losses. The share prices of 60 companies remained unchanged.
Top Performers
KEL led trading with 207,635,816 shares traded at Rs 4.67 per share. WorldCall Telecom followed with 42,917,587 shares at Rs 1.29 per share, and Pak International Bulk rounded out the top three with 33,969,303 shares at Rs 5.96 per share.
Unilever Pakistan Foods Limited experienced the highest increase, with a rise of Rs 96.84 per share, closing at Rs 18,263.67. Siemens (Pakistan) Engineering followed with a Rs 92.57 increase, closing at Rs 1,018.23.
In contrast, Rafhan Maize Products Company Limited saw the maximum decrease, closing down Rs 61.88 at Rs 7,300.00. Pakistan Engineering Company Limited also saw a decline, closing down Rs 28.60 at Rs 896.39.
Recent Market Trends
The index previously surged on Tuesday, hitting an intraday record high of 86,846.04, gaining 788.52 points. This was largely attributed to economic optimism, supported by a second consecutive monthly current account surplus and increasing foreign direct investment.
The robust trading and positive momentum indicate growing confidence among investors in Pakistan’s economic outlook. With expectations of further policy adjustments, the market’s performance may continue to rise in the coming weeks.
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