The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index soared to unprecedented levels, closing at a record high of 66,570.14. This remarkable milestone comes after a significant correction following a peak of 66,427 in mid-December.

Notably, the conclusion of general elections surpassed expectations, alongside anticipated interest rate cuts and fresh inflows from the International Monetary Fund (IMF) following the Staff-Level Agreement for the final tranche of $1.1 billion.

 

PSX Closing Summary Mar 27, 2024 2:14 PM
Index66,547.78
Change641.51 (0.97%)
As ofMar 27, 2024 2:14 PM
High66,607.87
Low66,003.43
Volume189,118,251
1-Year Change66.37%
YTD Change2.92%
Previous Close65,906.27
Day Range66,003.43 — 66,607.87
52-Week Range39,482.17 — 67,093.96

MARKET PERFORMANCE AND SECTORAL ANALYSIS

Wednesday’s trading session witnessed the KSE-100 index closing with a gain of 663.87 points or 1.01%. Throughout the day, the index remained bullish, hitting an intraday high of 66,607.88 and a low of 66,003.44 points. Commercial banks, power generation, distribution, fertilizer, cement, and technology & communication sectors significantly contributed to the index’s upward trajectory.

GOVERNMENT INITIATIVES AND ECONOMIC OUTLOOK

After experiencing a correction following its previous record high in mid-December, the index bounced back, surging past its previous peak after 3.5 months. This resurgence can be attributed to several key factors:

  1. Political Stability: The better-than-expected conclusion of general elections has instilled confidence among investors, contributing to the market’s positive momentum.
  2. Expectations of Interest Rate Cuts: Anticipation of interest rate cuts has bolstered investor sentiment, as lower interest rates typically stimulate economic activity and corporate earnings.
  3. IMF Inflows: Fresh inflows from the International Monetary Fund (IMF) following the Staff-Level Agreement (SBA) for the final tranche of $1.1 billion have injected liquidity into the market, supporting bullish sentiments.

EXPERT ANALYSIS AND MARKET OUTLOOK

Substantial progress on privatisation including that of PIA, coupled with potential IMF agreements, have propelled the KSE 100 index close to its previous all-time high. Foreign fund buying, indicated by NCCPL data, continues to bolster share prices, contributing to an attractive price-to-earnings (PE) ratio of less than 4.

Seven foreign investors have shown a strong interest in Pakistan International Airlines (PSX: PIAA), which is a very significant development. These investors are from Germany, France, the Netherlands, Qatar, the United Arab Emirates, Malaysia, and Turkiye. The participation of local groups and the surge of foreign interest underscore the worldwide significance of PIAA’s restructuring and privatisation effort.

SUMMARY OF MARKET ACTIVITY

In today’s trading session, the KSE-100 index experienced a mixed performance, with various sectors contributing to its movements. Notably, Commercial Banks played a significant role in supporting the index, contributing 205.32 points, followed by Power Generation & Distribution with 136.79 points, Fertilizer with 125.9 points, Cement with 67.39 points, and Technology & Communication with 32.6 points.

Conversely, certain sectors acted as a drag on the index, notably Oil & Gas Exploration Companies with a decline of 15.12 points, followed by Automobile Assembler with 13.84 points, Insurance with 8.73 points, Refinery with 2.61 points, and Real Estate Investment Trust with 1.22 points. Notable companies contributing positively to the index included HUBC with 135.87 points, MEBL with 45.89 points, UBL with 44.37 points, MCB with 42.76 points, and ENGRO with 38.81 points. Conversely, companies such as PPL with a decline of 32.98 points, NBP with 18.45 points, MTL with 13.73 points, RMPL with 5.81 points, and KEL with 5.18 points contributed to dragging the index lower.

In a broader market overview, the All-Share index closed at 44,075.12 with a net gain of 390.81 points. Total market volume reached 323.276 million shares, reflecting positive investor engagement and confidence.

 

TOP TEN ACTIVE STOCKS BY VOLUME – KSE-100 SUMMARY
CompanyVolume
LOTCHEM42,831,026
TELE29,177,124
PTC24,701,735
TOMCL18,792,000
HASCOL16,036,000
TRG14,931,452
AGL11,649,000
CNERGY10,555,262
WTL8,908,331
PAKRI8,863,000

KSE100_2024-03-27_16-40-45

MARKET NOISE

Against the US dollar, the Pakistani rupee (PKR) gained 3.68 paisa on Wednesday during the interbank session, showing resilience.

On Wednesday, oil prices kept falling as a result of an industry study that showed a significant build-up in US stocks.

In the local market, the cost of a tola of 24 carat gold saw a slight increase on Wednesday, rising by Rs. 100 to Rs. 229,500 from the previous sale price of Rs. 229,400. For the majority of Wednesday’s European session, the price of gold (XAU/USD) remains below $2,200 as it continues its sideways consolidation.

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