The Pakistan Stock Exchange (PSX) witnessed a significant rally on Wednesday, with the KSE-100 Index climbing by 727.96 points, or 0.84%, to close at 87,194.53. This marks the index’s 41st record close of the year, driven largely by a surge in shares of Fauji Fertilizer Company (FFC) and positive macroeconomic indicators that are enhancing market sentiment.
Intraday Performance
The KSE-100 Index traded within a range of 1,024.97 points, reaching an intraday high of 87,309.22 (+842.65) and a low of 86,284.25 (-182.32). The total volume for the KSE-100 Index was 424.37 million shares, reflecting robust trading activity.
Economic Indicators
Recent economic reports highlighted continued stabilization in Pakistan’s economy. Notably, the current account recorded a second consecutive monthly surplus, spurred by a surge in home remittances. For the first three months of the current fiscal year, the deficit narrowed significantly by 92%, reducing to $98 million from $1.24 billion during the same period last year.
Furthermore, the country attracted $385 million in foreign direct investment (FDI) in September, representing an impressive 81% increase compared to the previous year.
Market Breakdown
In today’s trading session, of the 100 index companies, 54 closed in the green, 40 in the red, five remained unchanged, and one was untraded. The top gainers included:
- KEL: +10.40%
- KOHC: +10.00%
- CHCC: +7.96%
- PSX: +6.85%
- ATRL: +6.11%
Conversely, the leading losers were:
- PIBTL: -11.57%
- IBFL: -6.50%
- KOSM: -3.28%
- JDWS: -3.06%
- NATF: -2.91%
Index Contributions
The companies that contributed positively to the index included:
- FFC: +301.12 points
- HBL: +65.39 points
- KOHC: +60.49 points
- CHCC: +57.15 points
- BAHL: +48.87 points
In contrast, the following companies pulled the index down:
- MCB: -74.68 points
- MARI: -55.46 points
- ENGRO: -26.53 points
- PIBTL: -20.19 points
- MTL: -20.16 points
Sector Performance
Sector-wise, the KSE-100 Index was bolstered by:
- Fertilizer: +324.48 points
- Cement: +186.61 points
- Power Generation & Distribution: +79.33 points
- Technology & Communication: +51.80 points
- Refinery: +42.41 points
On the downside, sectors that negatively impacted the index included:
- Automobile Assembler: -44.63 points
- Transport: -20.19 points
- Oil & Gas Exploration Companies: -12.25 points
- Synthetic & Rayon: -11.89 points
- Food & Personal Care Products: -11.31 points
Broader Market Overview
The All-Share Index closed at 56,079.68, gaining 327.54 points or 0.59%. The total market volume reached 699.29 million shares, slightly down from 722.21 million in the previous session, while the traded value increased to Rs26.82 billion, reflecting an uptick of Rs1.80 billion. A total of 294,664 trades were reported across 445 companies, with 212 stocks closing higher, 173 lower, and 60 remaining unchanged.
Year-to-Date Performance
The KSE-100 Index has gained 8,750 points or 11.15% during the fiscal year, while the calendar year-to-date increase stands at 24,743 points, equivalent to an impressive 39.62%. This performance underscores a favorable outlook for the stock market as it continues to respond positively to improving economic conditions.
PAKISTAN MARKET NEWS
In Wednesday’s interbank session, the Pakistani rupee (PKR) showed remarkable stability against the US dollar, closing at PKR 277.73 per USD, a slight dip from the previous day’s closing of PKR 277.74. The currency experienced an intraday range, hitting a high (bid) of PKR 277.80 and a low (ask) of PKR 277.70 throughout the trading day.
Surge in Gold Prices
In stark contrast to the rupee’s stability, the price of 24-karat gold per tola soared by Rs. 2,000, reaching an unprecedented high of Rs. 285,400 on Wednesday, compared to Rs. 283,400 on the previous trading day. According to the All Sindh Sarafa Jewellers Association, this increase reflects broader trends in the global gold market.
The global price of gold (XAU/USD) has continued to rise, entering the $2,750 range. This upward trend is primarily driven by heightened investor demand for safe-haven assets in response to ongoing geopolitical tensions, particularly in the Middle East, as well as increasing uncertainty surrounding the upcoming elections in the United States.
Geopolitical and Economic Influences
The current conflict in the Middle East has prompted investors to seek refuge in gold, traditionally viewed as a secure investment during times of crisis. Additionally, the political landscape in the U.S. is becoming increasingly volatile, with former President Donald Trump and Vice President Kamala Harris closely matched in opinion polls. The prospect of a Trump victory has raised concerns regarding potential threats to geopolitical stability, further fuelling demand for gold as a protective asset.
As the global financial landscape evolves, market participants are closely monitoring these developments, which could continue to impact both the value of the PKR and the price of gold in the coming weeks.
Conclusion
The stability of the Pakistani rupee, coupled with the significant rise in gold prices, highlights the complex interplay between local and global economic factors. Investors are advised to stay informed about these trends, as shifts in geopolitical dynamics and market sentiment could lead to further fluctuations in both currency and commodity prices.
