Stocks reemerge in the market, with KSE-100 concluding at a fresh peak level.
The Pakistan Stock Exchange (PSX) witnessed a significant milestone on Thursday, as the KSE-100 Index surged past 133,000 points, marking a new record high. This remarkable rise was fueled by a combination of factors that have been boosting investor confidence in the country's economic outlook for fiscal year 2025-26.
The rally was driven by strong buying activity in key sectors such as automobile assemblers, commercial banks, oil and gas exploration companies, and power generation firms. Major stocks like HUBCO, MARI, PRL, POL, MCB, MEBL, and NBP traded higher, contributing substantially to the rally.
The national budget's clarity and declining interest rates encouraged domestic investors to increase equity exposure, boosting market momentum. Improved macroeconomic fundamentals and a better geopolitical outlook were also highlighted by market analysts as important contributors to the positive sentiment.
Government policies and economic recovery under Prime Minister Shehbaz Sharif’s administration were credited for creating an environment of growing confidence among investors and business leaders. Positive year-end flows and institutional participation, combined with external financial support such as the rollover of $3.4 billion financing by China, which bolstered foreign exchange reserves above $14 billion and helped stabilize the Pakistani rupee, were also key.
Subsequent gains pushing the index past 133,000 points were fueled by expectations of robust banking sector earnings and dividend payouts, as well as optimism around a potential US-Pakistan trade deal and positive developments in textile stocks.
Anticipation of strong earnings reports spurred broad-based buying across key sectors. B.O.Punjab was the volume leader with 155.38 million shares, followed by Kohinoor Spining with 55.11 million shares. On the leaderboard, MEBL, MCB, UBL, BAHL, FFC, HBL, and BAFL were the top contributors to the index.
The surge is credited to robust policy measures and sustained efforts by the federal government and the State Bank of Pakistan (SBP) to channelize remittances through formal avenues. Pakistan recorded its highest-ever home remittance inflows, exceeding $38 billion during the last fiscal year FY25.
At close, the benchmark index settled at 133,782.34 level. The upbeat momentum was due to growing investor optimism ahead of the corporate results season. The moves by Trump did little to rattle markets, with the Nikkei falling 0.56%, while China's CSI300 blue-chip index rose 0.2% and Hong Kong's Hang Seng Index added 0.1%. EUROSTOXX 50 futures gained 0.18% and FTSE futures advanced 0.33%.
In summary, the factors contributing to the historic highs of the KSE-100 Index and strengthening Pakistan’s economic outlook include sectoral buying, national budget clarity, declining interest rates, improved macroeconomic fundamentals, geopolitical outlook, government policy and economic recovery, external financing & forex reserves, expectations of corporate earnings and dividends, positive trade deal prospects, and home remittance inflows. Together, these factors have enhanced investor confidence reflected in the PSX record highs.
- The surge of the KSE-100 Index past 133,000 points was driven by a combination of factors, such as strong buying activity in sectors like automobile assemblers, commercial banks, oil and gas exploration companies, and power generation firms.
- Major stocks like HUBCO, MARI, PRL, POL, MCB, MEBL, and NBP traded higher, contributing substantially to the rally.
- The national budget's clarity and declining interest rates encouraged domestic investors to increase equity exposure, amplifying market momentum.
- Government policies and economic recovery under Prime Minister Shehbaz Sharif’s administration were credited for creating an environment of growing confidence among investors and business leaders.
- Anticipation of strong earnings reports spurred broad-based buying across key sectors, with B.O.Punjab being the volume leader.
- The surge is also credited to robust policy measures and sustained efforts by the federal government and the State Bank of Pakistan (SBP) to channelize remittances through formal avenues. Pakistan recorded its highest-ever home remittance inflows, exceeding $38 billion during the last fiscal year.
