Shares at the Pakistan Stock Exchange (PSX) set a new milestone on Thursday, with the KSE-100 index soaring by over 2,500 points during intraday trading to surpass 113,000.
The KSE-100 index surged by 2,538.72 points, or 2.29%, reaching 113,348.93 points, up from the previous close of 110,810.21 points at 10:49 am.
Mohammed Sohail, CEO of Topline Securities, highlighted the “stellar” 180% return in just 18 months, with the market rising from 40,000 to 112,000. He called it the best recovery in the Pakistan Stock Market’s 75-year history, noting its resilience and growth.
Awais Ashraf, research director at AKD Securities, attributed the rally to a significant drop in treasury bill (T-bill) yields in the recent auction, boosting investor confidence amid an improving macroeconomic outlook. The government’s decision to lower T-bill yields by up to 100 basis points strengthened expectations of a softening monetary policy review on December 16.
Ashraf also noted that companies offering higher dividend yields and benefiting from structural reforms were driving the index’s growth.
Yousuf M. Farooq, director of research at Chase Securities, explained that the market’s rally was spurred by the drop in T-bill yields, making stocks more attractive compared to fixed-income instruments. He observed that mutual funds continued to invest heavily in equities due to declining returns from fixed-income and money market funds, while the sluggish property market further boosted the appeal of stocks.
Farooq recommended retail investors avoid reacting to short-term market fluctuations and focus on long-term investments, emphasizing the importance of building a diversified stock portfolio to manage risk and maximize returns.
Last week, the KSE-100 index also achieved a record point-wise weekly gain of 7,697 points.
