The Pakistan Stock Exchange (PSX) continued its bullish momentum on Wednesday, with the benchmark KSE-100 index climbing 847.17 points (0.88 per cent) to reach a historic 96,703.83 by mid-morning, surpassing the 96,000 mark for the first time. The index had closed at 95,856.66 on the previous day.
Retail interest fuelled significant activity, with K-Electric Limited (KEL) and Kohinoor Spinning Mills (KOSM) drawing investor attention. Yousuf M. Farooq, Director Research at Chase Securities, attributed KEL’s surge to “rumours of an imminent multi-year tariff approval,” which he noted could pave the way for a potential transaction and bolster market confidence.
Flat steel stocks also gained traction following a positive outlook from Aisha Steel Mills. The company projected sales growth to 210,000 tons in FY2025, up from 167,000 tons in FY2024, signalling strong sectoral performance.
Despite political uncertainty and the challenges of rollover week, Farooq highlighted a resilient investor sentiment, underpinned by improving macroeconomic conditions and stable market valuations. “Stocks are no longer as cheap as last year but remain reasonably priced,” he remarked.
He warned, however, that risks to the rally include political instability, macroeconomic shocks, excessive government spending, and a worsening current account. Nonetheless, he noted that funds shifting from fixed income to equities, coupled with potential interest rate cuts in December, could sustain upward momentum.
Adding to the optimism, Mohammed Sohail, CEO of Topline Securities, credited “non-stop buying by local mutual funds” for driving the bull run. He also highlighted the positive impact of a statement by The Resource Group (TRG) Pakistan Limited regarding its portfolio company, IBEX Limited.
TRG disclosed that its associate, The Resource Group International (TRGI), had repurchased approximately 3.56 million IBEX shares, retaining ownership of 1.8 million shares and maintaining its shareholder agreement with IBEX. The development boosted trading volumes and market sentiment.
With 10,001 new stock market accounts opened in October, reflecting growing retail participation, analysts remain optimistic about sustained activity. However, market dynamics remain sensitive to external shocks, making investor vigilance essential amid the current rally.
