The Pakistan Stock Exchange (PSX) made history this week as its benchmark KSE-100 index surpassed the 135,000-point milestone for the first time during intraday trading. The index achieved a record high of 135,521.84 points before settling at 135,366.18, marking a significant 0.79% increase of 1,066.42 points from the previous close of 134,299.76.
Trading activity reached impressive levels with 71.9 million shares changing hands, generating a total market value of Rs6.33 billion. The strong performance continues a bullish trend that saw the KSE-100 gain 2,351 points last week alone, representing a 2% week-on-week increase.
Several key factors contributed to this historic rally. The State Bank of Pakistan reported foreign currency reserves at a 39-month high of $14.5 billion, while remittances grew by 27% year-over-year to reach $38.3 billion. The market also responded positively to major developments including a new US-Pakistan trade deal, a $2 billion investment commitment from Azerbaijan, and progress on Panda bond offerings.
Read: Pakistan Stock Exchange Hits Record High as KSE-100 Surpasses 134,000 Mark
The energy sector emerged as a particular standout, with Oil and Gas Development Company (OGDC) and Pakistan Petroleum among the top performers. Banking stocks such as Meezan Bank and MCB Bank also showed strong gains, along with technology firm Systems Limited and infrastructure company Hubco.
Analysts note the market currently trades at an attractive 6.8x forward price-to-earnings ratio while offering a 7.4% dividend yield. However, they caution investors to remain mindful of potential profit-taking activity following the rapid ascent to record levels.
This milestone reflects growing confidence in Pakistan’s economic outlook, supported by fundamental improvements, including the early retirement of Rs1.5 trillion in national debt and a 43% year-over-year increase in auto sales. The PSX’s performance positions Pakistan as one of Asia’s standout emerging markets in 2024.
