Karachi: The Pakistan Stock Exchange (PSX) continued its bullish run on Monday, with the benchmark KSE-100 index crossing the 94,000 level during intra-day trading. This milestone reflects sustained investor confidence and positive market momentum.
The KSE-100 index closed at 93,648.32, marking a gain of 356.64 points, or 0.38%, from the previous close of 93,291.68. During trading, the index hit an all-time high of 94,020.02 before settling slightly below the 94,000 milestone. Trading volume remained strong, with approximately 468.86 million shares exchanged, valued at PKR 28.31 billion.
Strong Performance Across Key Sectors
Key sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, power generation, and refineries, attracted significant buying activity. Major stocks such as Pakistan Refinery Limited (PRL), Sui Southern Gas Company (SSGC), Oil and Gas Development Company (OGDC), K-Electric Limited (KEL), and Cnergyico PK Ltd (CNERGY) traded in positive territory, driving the index upwards.
Surge in Worker Remittances Boosts Confidence
In a positive economic development, Pakistan’s worker remittances surged by 24% year-on-year, reaching $3.052 billion in October 2024, up from $2.463 billion in October of the previous year. The State Bank of Pakistan (SBP) reported that remittances also rose by 7% month-on-month, increasing from $2.86 billion in September.
For the fiscal year’s first four months, total remittances have reached $11.8 billion, representing a 35% increase from the $8.8 billion recorded during the same period last year. These inflows are expected to contribute to Pakistan’s foreign exchange reserves and help stabilize the rupee.
IMF Mission to Assess Fiscal Performance
The International Monetary Fund (IMF) will conduct an urgent visit to Islamabad from November 11 to 15. The mission aims to assess Pakistan’s fiscal performance and discuss potential corrective actions, including a possible mini-budget. The IMF’s review is crucial for ongoing support, as Pakistan seeks to strengthen its economic foundation.
Market Supported by Economic Indicators and Investor Confidence
The PSX has been on a winning streak, supported by improving economic indicators and increased investor optimism. Analysts at AKD Securities note that ongoing monetary easing and a disinflationary environment are making equity investments more attractive. Currently, the market trades at a price-to-earnings (P/E) ratio of 4.2x and offers a dividend yield of 11.0%.
With reduced external financing needs under the IMF program, foreign investor interest is likely to continue. However, some analysts caution that a modest economic recovery could limit potential gains for cyclical stocks.
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