PSX Record High: Mideast Ceasefire Rally
- KARACHI - The Pakistan Stock Exchange (PSX) experienced a bullish week, wiht the KSE-100 index reaching a record high of 124,379.06 points, a 3.6% increase week-on-week.
- The KSE-100 index's role in the national economy is significant.
- China's reported willingness to reschedule $1.8 billion in debt for two years provided another boost.The government also raised 323 billion rupees in the latest T-bill auction.
The Pakistan Stock Exchange (PSX) surged to a record high this week, with the KSE-100 index closing at an unprecedented 124,379.06 points. This remarkable feat, a direct response to the Iran-Israel ceasefire, signals a surge in investor confidence, proving the pivotal role of geopolitical stability on the national financial landscape. Contributing factors include expectations of foreign inflows and a favorable government budget. Despite dropping foreign exchange reserves, the central bank’s actions are anticipated to play a critical role in long-term economic stabilization. Commercial banks and the cement sector led the gains. Stay informed with News Directory 3 for market analysis and updates. Discover what’s next for your investments.
Pakistan Stock Exchange Soars to Record High Amid Investor Optimism
KARACHI – The Pakistan Stock Exchange (PSX) experienced a bullish week, wiht the KSE-100 index reaching a record high of 124,379.06 points, a 3.6% increase week-on-week. Investor optimism, spurred by a ceasefire between Iran and Israel, drove the surge, easing geopolitical concerns and encouraging pre-fiscal year-end buying.
The KSE-100 index’s role in the national economy is significant. According to Topline Securities Ltd, the index gained 4,355.83 points,or 3.63%, during the week, fueled by expectations of foreign inflows and reduced regional tensions. The market saw a sharp mid-week turnaround, recording its second-largest single-day gain of 6,079 points, or 5.23%, following the ceasefire announcement.
China’s reported willingness to reschedule $1.8 billion in debt for two years provided another boost.The government also raised 323 billion rupees in the latest T-bill auction. However, the State Bank of Pakistan’s (SBP) foreign exchange reserves decreased by over $2.6 billion to $9.06 billion as of June 20, due to external debt repayments.The central bank anticipates a $3 billion inflow soon, which could strengthen reserves and play a crucial role in stabilizing the economy.
KSE-100 index ends week with a gain of 4,356 points, or 3.6%
The rupee saw a marginal depreciation, closing at 283.72 against the U.S. dollar. Trading activity slowed, with average daily volume down 14.4% to 736 million shares. However, traded value increased by 40.8% to $110.4 million. The role of foreign investment remains a key factor.
Arif Habib ltd. reported that the market initially opened cautiously due to Middle East tensions but turned positive after the ceasefire. The SBP raised 345 billion rupees in a T-bill auction and 251.5 billion rupees through GoP Ijara Sukuk.Power generation increased 1% year-on-year in May to 12,755 GWh, while Roshan Digital Account (RDA) inflows reached $10.4 billion by the same month.
Commercial banks, cement, fertilizer, exploration and production, and glass and ceramics sectors contributed considerably to the index’s gains. Lucky Cement, Fauji Fertiliser, UBL, meezan Bank, and OGDC were among the top gainers. Foreign investors turned net sellers, offloading $11.78 million worth of equities. Mutual funds and insurance companies were prominent buyers.
What’s next
AKD Securities noted that investor sentiment remains positive, supported by the federal budget approval for 2025-26 and the SBP’s expectation of achieving its $14 billion reserves target, aided by expected inflows. The PSX is expected to maintain its bullish trend, driven by easing inflation and strong corporate earnings.