The PSX benchmark KSE-100 Index experienced a significant surge, reaching a new high of 63,611.50 points during Wednesday’s trading session. This marked a 1% increase or 655.48 points compared to the previous day’s close at 62,956.02 points. Over the past five months, the market has witnessed a remarkable rally, with a nearly 60% rise, equivalent to over 23,600 points. In June 2023, the index stood at approximately 40,000 points.
Market discussions indicate that foreign investors are reentering the PSX as the rupee-dollar exchange rate stabilizes, early signs of economic recovery emerge, and political stability returns ahead of the upcoming general elections scheduled for February 2024. Previously, investors had been net sellers due to the high volatility in the rupee-dollar exchange rates. However, the exchange rate has remained stable around Rs 285 against the US dollar for the past three weeks, encouraging investors to take new positions at the PSX.
The leading volume leaders in the market were penny stocks and telecom companies, including K-Electric, WorldCall Telecom (WTL), Pakistan Refinery Limited (PRL), and other energy stocks.
Arif Habib Limited (AHL) forecasts a 32% growth in the benchmark index, projecting it to reach 81,000 points by December 2024. AHL believes that the availability of substantial liquidity among investors will contribute to this growth, as share prices still remain relatively low despite the significant increase in recent months.
