Stocks soared to a new record high on Wednesday, boosted by strong economic indicators and expectations of stable interest rates, dealers said.
Pakistan Stock Exchange (PSX)’s benchmark KSE-100 Index rose 1.53 percent or 961.7 points to 63,917.72 points, briefly crossing the 64,000 level for the first time in history.
The index remained positive throughout the day, showing an intraday high of 64,038.83 (+1,082.80) and a low of 63,188.72 (+232.69) points.
“Bulls are not leaving any room for bears to walk in at the PSX as strong buying across the board kept the momentum very high throughout the business hours,” said Topline Securities, a brokerage firm, in a note. "However, sectors get changed on daily basis. It was Tech, E&P & Banking sectors which received blue eyed boy treatment from the value hunters today."
Dealers said market participants are optimistic about the economic recovery after the economic numbers of the country showed signs of improvement following the expected inflows from IMF and friendly countries, relatively stable currency amid government-backed administrative efforts, and a possible slash in the interest rates.
Across-the-board buying was witnessed as index-heavy sectors including cement, chemical, commercial banks, oil and gas exploration companies, OMCs and refinery traded in the green.
Over 984 million shares were traded while total value clocked in at Rs35 billion. The total volume of the KSE-100 Index surged to 515.164 million shares.Notably, KEL led the volumes chart with the trading of over 143.6 million shares. Of the 100 index companies 60 closed up, 15 closed down, 1 was unchanged, while 24 remained untraded.
“Stocks closed new all time amid high trades on strong economic outlook and SBP data showing external debt edged down by 2.3 percent to Rs 22tr in Oct’23," said analyst Ahsan Mehanti at Arif Habib Corp.
He said that expectations for a current account surplus in November 2023, improved dollar inflows and rupee stability played catalytic role in new record close.
KSE-100 index was supported by commercial banks with 308.36 points, oil & gas exploration companies with 168.81 points, technology & communication with 148.62 points, fertilizer with 54.32 points, and cement with 52.98 points.
Companies contributing points to the index were MEBL with 88.29, HBL with 85.95, TRG with 74.22, PPL with 73.33, and SYS with 65.82 points.
KSE-100 Index was dragged down by tobacco with 21.24 points, automobile assembler with 7.89 points, insurance with 5.93 points, glass & ceramics with 2.25 points, and property with 0.31 points and companies contributing negatively in index lower were PAKT with 21.24 points, AICL with 5.93 points, MTL with 5.86 points, MUREB with 3.37 points and GHGL with 2.73 points.