Wednesday, December 06, 2023
By

PSX sets new record as KSE-100 crosses 63,000 mark

Analyst attributes expected interest rate cut, strong profitability to driving stock market

A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi, Pakistan July 3, 2023. — Reuters
A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi, Pakistan July 3, 2023. — Reuters

KARACHI: Bulls on Wednesday gripped the Pakistan Stock Exchange (PSX) as the benchmark index achieved a new milestone by crossing the 63,000 mark for the first time. 

The benchmark KSE-100 index jumped to its intraday high of 64,038.83 points. However, it closed at 63,917.72 points after gaining 961.70 points or 1.53%, compared to yesterday’s close of 62,956.02.

Pakistan-Kuwait Head of Research, Samiullah Tariq, told Geo.tv that major catalysts for the recent bull run in the equity market include strong profitability, attractive valuation, and expectations of a reduction in interest rate — scheduled to be announced on December 12.

He added that the "market should remain bullish in the coming days".  

The stocks are rallying due to the expectations of improved economic conditions following signs of progress in securing financial support from the International Monetary Fund (IMF) and friendly countries. 

Investors are confident about the outlook for the economy, which has shown some improvement in key indicators such as trade deficit, remittances, and exports. The local currency also remains stable.

"There is a positive sentiment in the market, driven by optimistic expectations of an improved economic landscape," said analyst Naveed Nadeem at Topline Securities. 

"This positive outlook is supported by anticipated financial inflows from the IMF and friendly countries. Additionally, there is speculation about a potential reduction in interest rates in the upcoming monetary policy committee meeting, further enhancing the positive environment."

Overall trading volumes reached 1.18 billion shares compared with Tuesday's tally of 761.8 million. The value of shares traded during the day was Rs45.7 billion.

Shares of 383 companies were traded. Of these, 258 stocks closed higher, 117 fell, and 8 remained unchanged.

K-Electric Limited was the volume leader trading with 143.6 million shares, gaining Rs0.17 to close at Rs3.52. It was followed by Worldcall Telecom Limited with 56.8 million shares, gaining Rs0.02 to close at Rs1.57, and Hascol Petroleum Limited with 54.5 million shares, gaining Rs1 to close at Rs6.69.