KSE-100 makes history by crossing 130,000 mark

KARACHI: The Pakistan Stock Exchange witnessed a new high on Wednesday amid improved economic indicators, with the benchmark KSE-100 Index closing at 130,344.03 after gaining 2,144.61 points, or 1.67 per cent.

During the session, the KSE-100 Index at one point touched a high of 130,545.94, as investors, especially locals, went on a buying spree.

It is improved the economic indicators that are sustaining the bullish trend, which has made the Pakistan Exchange one of the best performers in the world, showcased by the current record-breaking streak.

Hence, a current account surplus, rising hopes for fiscal reforms, a more or less stable rupee, a declining inflation and the resultant confident for further interest rate cuts [at least 1 per cent] are proving to be the driving force.

Fuelled by aggressive institutional buying and a wave of fresh fiscal-year optimism, the rally showed no signs of cooling. With fixed-income yields offering little excitement, investors are rotating into equities in search of alpha, giving the market a powerful tailwind, Topline Securities stated.

“Investor sentiment was buoyed by improving macroeconomic indicators, including a trade deficit narrowing by over 9 per cent in June, inflation easing to 3.2 per cent year-on-year, and the FBR targeting an 18 per cent tax-to-GDP ratio by FY28,” an analyst at the Al Habib Capital Ltd said.

EXTERNAL DEVELOPMENTS ALSO A FACTOR

Additionally, optimism was reinforced by external developments, as a Pakistani delegation arrived in Washington to finalise a trade agreement, signalling efforts to recalibrate economic ties with the US and ease tensions stemming from past tariff impositions, he said.

On Wednesday, banks led the charge, with blue-chip names like UBL, MCB, BAHL, MEBL, HBL, and NBP flexing their muscles — collectively pumping in 1,286 points into the index and stealing the spotlight.

Also, pharma made a comeback, turning heads after a while. SEARL hit its upper lock, while CPHL, HAELON, and ABOT also saw a healthy dose of investor appetite.

Meanwhile, overall market activity remained vibrant, with trading volumes crossing the 1.02 billion mark and total traded value reaching Rs49.17 billion. WTL led the volumes chart with 89.8 million shares.

With the index in uncharted territory, all eyes are now on earnings season and macro signals to see if the bulls have more steam left or if a breather is around the corner.