close
Sunday March 03, 2024

In a first, KSE-100 shoots past 66,000 mark

Analyst says flows continue to be strong with buying by foreigners increasingly being joined by domestic institutions

By Business Desk
December 08, 2023
A woman takes pictures of the electronic board displaying data at the Pakistan Stock Exchange in Karachi, on December 21, 2022. — PPI
A woman takes pictures of the electronic board displaying data at the Pakistan Stock Exchange in Karachi, on December 21, 2022. — PPI

KARACHI: Stocks rallied the Pakistan Stock Exchange (PSX) on Friday for the 11th consecutive session to push the benchmark KSE-100 index past the 66,000 barrier for the first time in history.

The benchmark index hit an all-time high of 66,273.73 points. However, it closed at 66,223.63 points after gaining 1505.56 points or 2.33%, compared to yesterday's close of 64,718.07 points.

Raza Jafri, who is the head of equities at Karachi-based Intermarket Securities, said that the banks and energy sector lead the rally at the bourse as cheap valuations and a reasonably settled environment help flows remain strong as foreign and local buys continue to invest.

"The MPC (Monetary Policy Meeting) next week should set the tone for near-term trading. While unchanged interest rates are widely expected, investors will look for clues in the text of the monetary policy statement to gauge how much interest rates can come down by next year," he added.

The KSE-100 increased by 4,532 points in the ongoing week, with brokerage Arif Habib Limited terming the gains “extraordinary”.

In an address at a ceremony at the PSX, caretaker Prime Minister Anwaar-ul-Haq Kakar said that the investors had regained confidence after the successful signing of a standby agreement with the International Monetary Fund (IMF), the execution of the annual budget 2023-24, and improvement in the fiscal and external accounts.

The prime minister, addressing the ceremony marking the first auction of the Government Ijarah Sukook bonds issued by the PSX, said it was the collective responsibility of the stock brokers, SECP, and other participants to promote upcoming primary market auctions to market it a remarkable achievement for the entire market ecosystem.

Prime Minister Kakar said the bullish sentiment in the stock exchange was made possible by an improved economy, the participation of foreign investors, a high yield, and a stable exchange rate.

He said the capital market provided fuel for businesses to expand, create jobs, and contribute to the overall development of society.

The day witnessed robust trading activity, with a total of 1.32 billion shares exchanged on the stock exchange, amounting to a total value of Rs33.3 billion.

Shares of 394 companies were traded. Of these, 257 stocks closed higher, 126 fell, and 11 remained unchanged.

K-Electric Limited was the volume leader trading with 342.5 million shares, gaining Rs0.46 to close at Rs4.43. It was followed by Worldcall Telecom Limited with 98.5 million shares, gaining Rs0.05 to close at Rs1.67, and Pakistan Telecommunication Company Ltd with 58.7 million shares, gaining Rs0.93 to close at Rs9.65.