The Pakistan Stock Exchange (PSX) marked a significant milestone on Wednesday as the KSE-100 index surged past the 80,000-point barrier during intra-day trading. At 11:28 AM, the index reached an all-time high of 80,193.76 points, reflecting a gain of 640.88 points from the previous session’s close of 79,552.88 points.
Driving factors behind the surge
The latest upswing in the market continues a bullish trend observed throughout the week, with the KSE-100 index crossing the 79,000-point threshold just the day before. Analysts attribute this robust performance to several key factors:
- Rising Global Crude Oil Prices: The increase in global oil prices has significantly boosted investor confidence in the oil sector, expecting strong dividend returns.
- IMF Bailout Discussions: Ongoing positive negotiations for an International Monetary Fund (IMF) bailout deal have also fuelled market optimism, contributing to the sustained rally.
- Strong Dividend Expectations: Anticipations of favourable dividends from major oil companies have further spurred investor interest, driving up stock prices.
Record-breaking performance
The PSX has been on an impressive upward trajectory, reclaiming its status as the world’s best-performing stock market for the fiscal year 2023-24. The market has seen an extraordinary 89 per cent increase in local currency terms and a 94pc rise in US dollar terms.
June 2024 was particularly notable for record-breaking gains, pushing market capitalisation beyond Rs10 trillion. This momentum carried into the new fiscal year, with the PSX gaining nearly 380 points on the first trading day and an additional 892 points on Tuesday.
Market outlook
Wednesday’s historic performance underscores the PSX’s remarkable resilience and growth potential. The crossing of the 80,000-point milestone is not just a numerical achievement but a reflection of underlying economic optimism and investor confidence in Pakistan’s financial markets.
Financial analysts remain cautiously optimistic, noting that while the current bullish trend is encouraging, sustainable growth will depend on continued positive developments in the global economic landscape and the successful conclusion of the IMF bailout negotiations.