On Wednesday, the index surged to an all-time high as the benchmark KSE-100 index recovered 4,695 points or 4.96% to close at 99,269.25. This rally comes a day after the market witnessed the steepest single-day drop of more than 3,500 points on Monday due to investor optimism after the PTI-led protests ended.
The index peaked intraday at 99,549.81 points, the biggest one-day rise in its history. The KMI-30 index also rose by 6,342 points to close at 144,783.05. Trading volumes fell 5.3 percent to 1.05 billion shares from the previous session.
Economic stability was instrumental in the rebound. According to Aqeel Karim Dhedhi, chairman of AKD Group, the rally was due to dropping international oil prices, improving economic indicators, and easing political tensions; however, he cautioned that long-term political stability will be required for sustained growth.
Robust activity was seen throughout key sectors like banking, technology, and cement. The companies that contributed the most to the rally are Fauji Fertilizer, Habib Bank Limited, and Systems Limited. However, despite these positive trends, foreign investors continued to sell and took out $6.75 million worth of shares on the net.
The decline in inflation and stable rupee have given market analysts hope that they might finally break the 100,000-point barrier. While the rally gives evidence of renewed investor confidence, it also points towards much-needed solutions for bigger challenges ahead, such as the delayed privatization agenda and revenues.
The good show at PSX presents its robustness, establishing grounds for further growth, and reflecting even broader opportunities in the process of Pakistan’s economic development.
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