In a remarkable feat, the Pakistan Stock Exchange (PSX) skyrocketed to a record high in the last week as a host of encouraging macroeconomic indicators fuelled investors’ interest who vied to grab shares of attractive companies.
The benchmark KSE-100 index closed above 53,000 points for the first time in the bourse’s history where positive political developments also played their part, soothing investors’ concerns.
Among major economic news, the yields of T-bills declined while the State Bank of Pakistan (SBP) left its policy rate unchanged at 22%. Pakistan’s inflation reading for October eased and the trade deficit also narrowed. In addition, the International Monetary Fund’s (IMF) first review began on November 2.
On Monday, the week commenced with a highly bullish activity aided by strong corporate earnings and ahead of IMF review that would unlock the second loan tranche of $700 million.
The market maintained its winning streak next day as well as it reached close to the 52,000 mark, driven by a broad-based rally after the SBP left the policy rate unchanged.
On Wednesday, the PSX marched further upwards on the back of a robust trading activity, strong corporate earnings and government’s discussions regarding progress on China-Pakistan Economic Corridor (CPEC) projects.
Bulls continued to hold their firm grip on Thursday as they snapped up selective stocks following a decline in T-bill yields and easing of crude oil prices in the global market.
On the last day of the trading week, the bourse maintained its bullish momentum where the KSE-100 surged past the 53,000 mark.
The market closed at 53,123 with an increase of 2,179 points, or 4.3% week-on-week (WoW).
JS Global analyst Muhammad Waqas Ghani, in his report, noted that the KSE-100 set a new high at 53,123 compared to the previous record close at 52,876 reached in May 2017.
“Average trading volumes and value also showed a decent increase of 23% and 14% WoW, respectively,” he said.
