Pakistan’s benchmark index hits all-time high; surpasses 60,000 level milestone

On Tuesday, the Pakistan Stock Exchange (PSX) extended its upward momentum, achieving a historic milestone by surpassing 60,000 points for the very first time.

The benchmark KSE-100 index surged by over 972 points, reaching 60,783 points at the time of writing this article. Historically, the Karachi 100 index has been on an upward trajectory since January 2009, starting around the 5,377 level. Over the course of approximately 8.35 years or 3042 days, the index demonstrated a remarkable rally, reaching a high of approximately 53,127 in May 2017, signifying an impressive gain of around 888%. However, during the COVID-19 pandemic, the index experienced a decline, hitting a low of 27,046 in March 2020. Subsequently, it rebounded from these lows and surpassed its previous high of 53,127 in November of the current year.

The index opened the month at 52,075, and on November 6, it surpassed its previous all-time high with a surge of about 1.44% in a single day, closing above this significant high level. Furthermore, during this month of November, the index has seen an increase of around 17%, with two days remaining in the month.

Chart (Monthly) 

Top Gainers: 

Factors Driving Market Momentum 

Investors are anticipating an upcoming reduction in the central bank’s policy interest rate, which currently stands at an all-time high of 22%. Inflation, which had surged, seems to have reached its peak, having decelerated to 26.9% year-on-year as of October.

Despite the prevalent political and economic challenges in Pakistan, the stock index has surged by around 50% this year. This significant rise came after the approval of a USD 3 billion loan program by the International Monetary Fund (IMF) in July. The purpose of this loan was to prevent a potential sovereign debt default, contributing to a positive trajectory in the market.

Some analysts believe that the market is welcoming the successful staff-level agreement for the second tranche of funds under the current IMF Standby Arrangement, alongside the expected disbursement of these funds in December, as well as other foreign exchange inflows from multilateral institutions.

About KSE-100 Index 

The Karachi Stock Exchange (KSE) 100 Index, also known as the KSE-100, is Pakistan’s premier stock market index. It consists of 100 major companies listed on the exchange and is calculated based on their market capitalisation derived from the shares traded in the market. This index serves as a barometer for the overall performance of Pakistan’s stock market and provides insight into the collective performance of these 100 prominent companies in various sectors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.