In a remarkable development for Pakistan’s financial markets, the Pakistan Stock Exchange (PSX) hit a historic milestone as the KSE-100 index crossed the 120,000 mark for the first time. This surge was driven by investor optimism, spurred by the government’s recent announcement to reduce electricity rates by over Rs. 7.4 per unit. The news sparked renewed interest in equities, fueling a robust rally in the stock market and contributing to significant gains.
At around 10:00 AM on Friday, the KSE-100 index saw a substantial uptick, gaining 1,859 points or 1.56 percent, reaching an all-time high of 120,796 points. However, the momentum was short-lived, as the index slightly retreated to 119,230 points by 12:10 PM. Despite the pullback, the market remained in positive territory, maintaining a gain of 0.67 percent at 119,730 points by 1:10 PM, reflecting an increase of 792 points for the day.
The surge in the PSX index is indicative of the market’s positive response to the government’s decision to lower electricity tariffs, a move that is expected to ease the burden on businesses and consumers alike. Investors interpreted the tariff reduction as a positive signal for the country’s economic stability and growth prospects, prompting increased market participation. This announcement has helped boost market sentiment, contributing to the broader optimism that has been driving the market’s performance in recent days.
On the trading front, a total of 306,842,631 shares were traded on Friday, with a cumulative value of Rs. 19.5 billion. This active trading volume reflects the heightened interest from investors, who have been capitalizing on the positive market developments. Among the 450 companies whose shares were traded, 258 recorded gains, while 174 experienced losses. Notably, 18 companies saw their share prices remain unchanged, indicating a generally strong performance across the board.
Despite the recent news about the imposition of a 29 percent US trade tariff on Pakistan, the market has largely brushed off any potential negative impact from the tariffs. This resilience suggests that investors are focusing on more immediate positive factors, such as the electricity tariff reduction, and are largely unfazed by external challenges. This shift in sentiment may indicate that the market is placing more value on domestic economic reforms rather than external risks.
In terms of top traded stocks, several companies stood out for their high volumes and price movements. Bank Alfalah (BAFL) led the way, with 26.68 million shares changing hands, closing at Rs. 74.6, marking a slight increase. Other notable stocks included Cnergyico (CNERGY), which gained 0.12 points to close at Rs. 8.29, and Fauji Cement (FCCL), which saw a price increase of 0.63 points to end the day at Rs. 47.95. The BOP, Power, and NBP stocks also showed strong performance, with notable volume and price changes.
This historic crossing of the 120,000 threshold by the KSE-100 index represents a significant milestone for Pakistan’s stock market, underscoring the positive investor sentiment and the potential for continued growth. With the government’s efforts to address key economic challenges, such as electricity pricing, and the market’s resilience despite external pressures, the outlook for the PSX remains optimistic.
As we continue to witness an evolving economic landscape, it’s clear that market participants are confident in Pakistan’s potential for recovery and growth. The crossing of the 120,000 mark is not just a symbolic achievement; it reflects the market’s robust performance amid an environment of positive policy measures and economic reforms.
In conclusion, the PSX’s achievement in reaching the 120,000 milestone highlights a growing confidence in the market and signals a new era of growth for Pakistan’s financial sector. With continued positive momentum, the stock market is well-positioned for further gains as investors respond favorably to both government initiatives and broader market trends.