The Pakistan Stock Exchange (PSX) experienced a surge in investor optimism on Thursday, as the benchmark KSE-100 Index reached a historic high of 82,000 during intra-day trading.
By the close of the market, the KSE-100 settled at 81,459.29, marking an increase of 997.95 points, or 1.24%. On Wednesday, the KSE-100 Index closed at 80,461.34, gaining 970.20 points, or 1.22%.
The trading day commenced with a strong buying trend that sustained throughout most of the session, although late-session activities trimmed some of the gains.
According to Topline Securities, the stock market's performance is reflective of key economic reports suggesting stabilisation, along with expectations of potential interest rate reductions by the central bank. The government's unexpected rejection of all bids for Market Treasury Bills further fueled this optimism.
Notable contributors to the index’s upward momentum included Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), Meezan Bank (MEBL), MCB Bank, and Oil and Gas Development Company (OGDC), which collectively added 690 points to the index.
In addition to global factors, improvements in local economic indicators, including a current account surplus and expectations of further declines in inflation, have also bolstered market sentiment.
The State Bank of Pakistan reported a surplus of $75 million in the current account for August 2024, compared to a deficit of $152 million in the same month the previous year.
Meanwhile, the Pakistani rupee strengthened against the US dollar, closing below the 278 level for the first time in over five months. The local currency appreciated by 0.05% in the inter-bank market, closing at 277.91 against the dollar, marking a gain of Re0.13 from the previous day.
Trading volume on the all-share index rose to 459.04 million shares from 400.19 million on Wednesday, with the total value of shares increasing to Rs18.61 billion from Rs15.9 billion.
Kohinoor Spinning led trading volume with 35.18 million shares, followed by K-Electric Ltd with 23.82 million shares, and WorldCall Telecom with 22.93 million shares. Of the 469 companies traded on Thursday, 145 saw gains, 239 experienced losses, and 85 remained unchanged.
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