Key Points
- KSE-100 closes above 154,000 for the first time.
- Rally driven by macroeconomic data and strong earnings.
- $8.5bn deals signed at Beijing investment conference.
- Rupee rises for 21st straight session.
KARACHI: Records continued to tumble at the Pakistan Stock Exchange (PSX) on Friday as the benchmark KSE-100 Index surged more than 1,600 points to close above the 154,000 level for the first time in history, lifted by upbeat economic data and strong corporate earnings.
The market sustained positive momentum throughout the session, touching an intra-day high of 154,511.31 points before settling at 154,277.19, up 1,611.47 points or 1.06%. This followed Thursday’s rally when the index had ended at 152,665.72 points, also a record at the time.
Drivers of the rally
Analysts attributed the fresh surge to favourable macroeconomic indicators, robust corporate results and renewed investor confidence. A series of high-profile agreements signed in Beijing on Thursday also buoyed sentiment.
Chinese and Pakistani companies reportedly concluded $7 billion worth of Memoranda of Understanding (MoUs) and $1.54 billion worth of joint ventures in agriculture, electric vehicles, solar power and steel at the Second Pakistan-China B2B Investment Conference.
“Market is up 30% in the ongoing calendar year and almost four times in the last two years,” said Amreen Soorani, Head of Research at Al Meezan Investments, in comments to Business Recorder. She noted that the rally has lifted valuations to around seven times ‘price-to-earnings’ (P/E), still below the historical average of eight times.
Soorani added that the outlook remains broadly positive, supported by expectations of 8–10% corporate profit growth and an attractive dividend yield of 8%. “However, risks including poor macroeconomic conditions or climate events could disrupt profit growth and investor sentiment,” she cautioned.
Global and currency backdrop
The PSX’s advance came in step with gains across Asia, where markets tracked Wall Street’s overnight rise. Investors worldwide grew more confident of a U.S. Federal Reserve interest rate cut on September 17, with futures pricing in at least 60 basis points of reductions this year.
The S&P 500 closed at a record high on Thursday, gaining 0.8%, while the Nasdaq climbed 1% to near its August peak. Japan’s Nikkei and Taiwan’s benchmark each rose 0.8%, while Hong Kong’s Hang Seng, Chinese blue chips, and Australian stocks also posted modest gains.
Meanwhile, the Pakistani rupee extended its winning streak, firming for the 21st consecutive session. The currency closed at 281.65 to the U.S. dollar, up by Rs 0.02 or 0.01% in the inter-bank market.
Market statistics and movers
Trading activity intensified as volume on the all-share index jumped to 1.078 billion shares from 954.33 million in the previous session. The value of shares traded increased from Rs 46.05 billion to Rs 59.95 billion.
Bank of Punjab led volumes with 146.09 million shares, followed by First National Equities at 55.75 million and Fauji Foods Limited with 50.94 million.
Among gainers, Sitara Chemical Industries surged Rs 79.77 to close at Rs 877.47, while Siemens (Pakistan) Engineering advanced Rs 50.17 to Rs 1,603.17. On the losing side, PIA Holding Company Limited-B tumbled Rs834.67 to Rs25,506.00, and Hoechst Pakistan Limited shed Rs96.79 to finish at Rs4,004.48.
Out of 479 companies traded, 239 closed higher, 210 fell, and 30 remained unchanged.
