KSE-100 retreats after briefly touching 94,000 but still closes at record high

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 closed higher by 357 points as traders took a breather after the index crossed 94,000 for the first time during intra-day trading on Monday.

The KSE-100 started the session positive, hitting a record peak of 94,000, which was followed by some profit-taking that reduced intra-day gains.

At close, after some late-session buying, the benchmark index settled at 93,648.32, an increase of 356.64 points or 0.38%.

“The market showed positive momentum, with the index reaching a peak of 94,020 and dipping to a low of 93,319, as investors took a directional stance, driven by lower valuations in the pharma sector,” brokerage house Topline Securities said.

The index was lifted by positive contributions from OGDC, PPL, ABOT, SEARL, and GLAXO, which collectively added 399 points, it added.

Market experts attributed the momentum to several positive macroeconomic developments, including the State Bank of Pakistan’s (SBP) historic 250 basis points (bps) policy rate cut, lowering the rate to 15%.

In the latest quarterly MSCI review, Pakistan’s weight in the MSCI index rose to 4.4%, making it the second most liquid market in the MSCI FM.

Moreover, Pakistan’s remittance inflows clocked in at $3.1 billion in October 2024, providing extra cushion to the economy.

During the previous week, PSX witnessed a bullish trend and hit historic highest-ever levels due to aggressive buying mainly by local investors and institutional support.

The benchmark KSE-100 index surged by massive 2,431.83 points on week-on-week basis and crossed the historic 93,000 level for the first time in history to close at the highest ever 93,291.68 on Friday.

Globally, Hong Kong stocks led declines in Asia on Monday after Beijing’s latest stimulus fell short of investor expectations, overshadowing Wall Street’s record highs from Friday and futures pointing to further strength at the reopen.

Bitcoin climbed to an all-time high as Donald Trump’s victory in the US presidential election along with pro-crypto candidates being voted to Congress spurred expectations of a light-handed regulatory environment.

The dollar traded not far from last week’s four-month peak versus major peers as traders prepared for a key reading of US consumer inflation this week, as well as a parade of Federal Reserve speakers, including Chair Jerome Powell on Thursday.

Hong Kong’s Hang Seng tumbled 2.5% as of 0200 GMT, with a sub-index of mainland Chinese property shares tumbling 3.9%. Chinese blue chips weakened 0.3%.

Investors expect that Trump’s second term in office will bring equities-boosting tax cuts and looser regulations.

Meanwhile, the Pakistani rupee registered marginal gains against the US dollar, appreciating 0.04% in the inter-bank market on Monday. At close, the currency settled at 277.86, a gain of Re0.12 against the greenback.

Volume on the all-share index increased to 815.19 million from 763.25 million on Friday.

The value of shares rose to Rs37.32 billion from Rs30.21 billion in the previous session.

Cnergyico PK was the volume leader with 98.60 million shares, followed by Pak Elektron with 78.09 million shares, and K-Electric Ltd with 70.19 million shares.

Shares of 454 companies were traded on Monday, of which 227 registered an increase, 184 recorded a fall, while 43 remained unchanged.