The Pakistan Stock Exchange (PSX) benchmark KSE-100 index, last week, soared to an unprecedented all-time high above 66,000 points.
This record-setting close was fueled by the visit of Caretaker Prime Minister Anwaarul Haq Kakar, who marked the launch of a Rs30 billion Ijara Sukuk.
The index witnessed an impressive increase of 4,532 points, or 7.3% week-on-week (WoW), settling at 66,223.63. The remarkable surge was attributed to the outstanding performance of major sectors, including banks, fertilisers, and exploration and production (E&P).
Throughout the week, bullish sentiments dominated the trading floor, bolstered by several encouraging factors. These included anticipation of the International Monetary Fund’s (IMF) executive board meeting on January 11 for the approval of a $700 million loan tranche.
Monday witnessed the index reaching a record high due to anticipation of a free trade agreement with the Gulf Cooperation Council (GCC) and measures for establishing a sovereign wealth fund.
The following day, the bourse reached close to 63,000 points, driven by a 9% month-on-month rise in oil sales and anticipation surrounding the upcoming release of the IMF loan tranche.
On Wednesday, stocks surged to a new peak fueled by a positive economic outlook and a reduction in external debt, attracting investors’ interest in specific sectors.
The next day, the PSX broke another record amid heavy trading, with news of potential Chinese investment worth $1.5 billion in Pakistan Refinery Limited (PRL), inspiring market players to engage in heavy buying. Additionally, investors were encouraged by the Asian Development Bank’s (ADB) project financing of around $650 million for Pakistan.
Friday’s extraordinary performance propelled the KSE-100 index to a new all-time high above 66,000 points, with significant strength drawn from PM Kakar’s visit for the launch of a Rs30 billion Ijara Sukuk.
JS Research analyst Shagufta Irshad, in her review, remarked that investor participation remained strong at the PSX as average daily turnover stood at 1,026 million shares, up 64% WoW. In this, net foreign buying, once again dominated, accumulating to $11 million during the week.
