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Bullish Surge: PSX Hit its Highest Mark at 66K | One Homes

Written by Saliha Aziz | Jan 1, 2024 5:07:40 PM

In an exhilarating display of market vigor, the Pakistan Stock Exchange (PSX) experienced a remarkable rally, culminating in the benchmark KSE-100 index closing at an impressive 66,130.02, reflecting a substantial gain of 679.83 points. This surge comes on the heels of heightened investor optimism, fueled by expectations surrounding the International Monetary Fund’s (IMF) upcoming board meeting for loan approval and a promising uptick in the State Bank’s foreign currency reserves.

 

The trading day began with a slight setback, as profit-taking led to an intra-day low of 65,559.48. However, swiftly recovering from this early dip, they seized control, propelling the KSE-100 index to higher altitudes. Noteworthy support emanated from key sectors such as exploration and production (E&P), power, refinery, and banking, propelling the market to its intra-day zenith at 66,346.76.

 

Several catalysts contributed to this momentum, including the clarification by the Election Commission of Pakistan that polls are scheduled to proceed as planned. Additionally, pivotal events such as PTCL’s substantial Telenor acquisition deal and Saudi Aramco’s $100 million agreement to acquire equity in Gas and Oil Pakistan served as significant positive drivers.

 

While the market experienced a momentary dip an hour before closure, it rebounded swiftly, ultimately concluding the day with an impressive increase of over 650 points. Foreign investors demonstrated their confidence with a net buying activity amounting to Rs1.9 billion.

 

The overall upbeat sentiment in the market is projected to continue, presenting investors with opportunities, particularly in the banking, cement, and exploration and production (E&P) sectors.