PSX Surges to New Heights Backed by Positive Economic Outlook
The Pakistan Stock Exchange (PSX), despite a seemingly slow start early in the morning, ultimately soared to reach a record-breaking peak during the final hours of trading on Wednesday. The market's leading indicator, the KSE-100 index, which started the day at an intra-day low of 63,188.71 points, witnessed a gradual upward movement before ending the session at a staggering intra-day high of 64,038.83 points; thereby crossing the 64,000 mark for the first time in its history.
Financial Predictions and Economic Factors Drive Market Optimism
A bullish market was spurred on by the consensus among investors that November 2023 would witness a current account surplus. Coupled with rising dollar inflows and stability of the Pakistani Rupee, the market value experienced a significant rise. A notable increase in buying was recorded across various sectors including Tech, Exploration and Production (E&P), and Banking, which contributed to the upward trend.
Market Struggles at the 64,000 Level but Finishes Strong
Although the market witnessed a minor struggle in maintaining its stance at the 64,000 level, it eventually gathered momentum to conclude the day close to this landmark achievement. Various industry experts provided insight on the day's performance. According to Ahsan Mehanti, the MD of Arif Habib Corp, the new record was largely a result of a positive economic outlook and proven data from the State Bank of a 2.3% fall in the country's external debt, which now stands at Rs22 trillion as of October 2023.
The Local Market witnesses Remarkable Gains
By the time the operations concluded for the day, the KSE-100 index recorded sizable gains of 961.70 points, signifying an increase of 1.53%, taking the value to a final level of 63,917.72. Industry analyst firm, Topline Securities, revealed that the current trend observed in the Pakistan equities market was considered to be a new day, and hence a new all-time high. The investor sentiment remained positive, with a substantial volume of trading taking place, and very little room for bearish tendencies. This encouraged a high momentum in market activities all through the business hours.